Housing Market Sentiment Flat As Summer Nears

Fannie Mae’s Home Purchase Sentiment Index measures Americans’ perceptions of the housing market and their personal finances. Each month, participants are asked how they feel about buying and selling a home, mortgage rates, prices, the job market, and their income. In May, the index was relatively flat, increasing one point from the month before. There was a notable increase in the number of respondents who feel more secure in their jobs and money but the number who said they feel now is a good time to buy a house fell. Doug Duncan, Fannie Mae’s senior vice president and chief economist, said market conditions are challenging buyers but haven’t yet curbed enthusiasm for home buying. “Despite the challenging buying conditions, consumers do appear more intent to purchase on their next move, a preference that may be supported by the expectation of continued low mortgage rates, as well as the elevated savings rate during the pandemic, which may have allowed many to afford a down payment,” Duncan said. The results also show a 2 percent decline in the number of participants who believe home prices will rise over the next year. The number who think mortgage rates will fall increased 4 percent. (source)

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