Fannie Mae: Consumer Sentiment Rises in November
(Image courtesy of Fannie Mae; Breakout image courtesy of Tina Nord)
Fannie Mae released the results of its Home Purchase Sentiment Index for November, finding it rose 0.4 point to 75.
That’s the latest in a sharp upward turn in optimism.
Year-over-year it’s up 10.7 points overall.
A record-high share of consumers–45%–said they believe mortgage rates will decline in the next year. And, only 38% believe home prices will rise.
Twenty-three percent of respondents say it’s a good time to buy a home, but that’s a significant jump from last November, at 14%. In general, that metric is continuing to trend upward.
And, 64% said it’s a good time to sell, flat from last month and up year-over-year.
Most respondents aren’t concerned about job loss over the next year, at 78%. Also, 16% anticipate their household income will increase significantly over the next year, with 12% thinking it will decrease significantly.
“Over the past year, we have seen a significant improvement in general consumer sentiment toward the housing market, largely driven by increased optimism that mortgage rates will fall and improved perceptions of both homebuying and home-selling conditions,” said Mark Palim, Fannie Mae Senior Vice President and Chief Economist. “Notably, this improvement in sentiment continues a trend that began about two and a half years ago following the sizeable run-up in home prices during the pandemic, and it is likely due in part to consumers’ slow-but-steady acclimation to current market conditions. Of course, high home prices and high mortgage rates remain the primary reasons why the vast majority of consumers think it’s a ‘bad time to buy’–trends that we expect to continue into the new year.”