Confidence in housing market reaches highest level in a year

Confidence in housing market reaches highest level in a year | The Hill

FILE – A home with a “Sold” sign is shown, Sunday, May 2, 2021, in Surfside, Fla. Homebuyers are regaining leverage at the negotiating table as the housing market slows, new data from Redfin shows. On average, U.S. homes purchased during a four-week period in August 2022 sold for less than the asking price. (AP Photo/Wilfredo Lee, File)

Consumers’ view that mortgage rates will go down elevated confidence in the housing market to its highest level in nearly a year last month, according to data released on Monday. 

Fannie Mae’s Home Purchase Sentiment Index jumped 5.5 points to 66.8 in April, marking the highest monthly gain in two years.  

But the full index, which measures confidence in the housing market and the broader economy, was down by 1.7 percent from a year ago. 

But, all six components of Fannie Mae’s survey rose from the previous month with the largest bump seen in optimism about mortgage rates. The percentage of those surveyed who said mortgage rates would go down in the next 12 months increased by 10 percentage points to 22 percent. 

“An increased number of respondents indicated they think mortgage rates will go down over the next year, a belief that could be due to a combination of factors, including an awareness of decelerating inflation, market suggestions that monetary conditions will ease in the not-too-distant future, and, of course, actual mortgage rate declines during the month,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a statement.  

Mortgage rates ticked down again last week to 6.39 percent even as the Federal Reserve voted to raise its interest rate for the 10th month in a row. At the same time last year, the average 30-year fixed rate mortgage stood at 5.27 percent. 

Meanwhile, the survey saw a 3-percentage point increase among those who say it’s a good time to buy a home, while the percentage of those surveyed who say it is a bad time to buy fell by 2 percentage points. 

Yet consumers remain concerned about the trajectory of home prices, Duncan said, which is the main reason they think it is a bad time to buy a home.  

The S&P CoreLogic Case-Shiller U.S. National Home Price Index released last month revealed that prices rose from the previous month by 0.2 percent after seasonal adjustment while they were up by 2 percent year-over-year.   

“Until affordability improves for a larger swath of the homebuying public, we believe home sales will remain subdued compared to previous years,” Duncan concluded. 


Case Shiller

Fannie Mae

Federal Reserve

Home prices



housing market

Housing market

housing prices


interest rate hikes


Mortgage raTes

Real estate

Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Sign up to receive the best Underground art & real estate news in your inbox everyday.

We don’t spam! Read our privacy policy for more info.

This post was originally published on this site