Consumer confidence rises in Fannie Mae study
Fannie Mae recently updated their Purchase Sentiment study which shows more Americans have greater confidence in home buying and an increase in the number of people who believe now is a good time to buy.
“Over the past year, a growing share of consumers say that they expect mortgage rates to remain steady,” says Doug Duncan, Fannie Mae’s chief economist and senior vice president.
With declines in loan rates, buyers can increase what they pay for a home and hold their payment constant. This puts upward pressure on prices which mitigates the benefit of lower mortgage rates for many buyers.
Here are some items from the Fannie Mae Purchase Sentiment study for November:
- 61% of Americans say now is a good time to buy (up from 57% in October) and the highest level since March 2018. Meanwhile, 29% said now is a bad time to buy, which is down from 36%.
- 66% of Americans say it is a good time to sell (down slightly from 67% in October).
- 44% of Americans say home prices will rise in the next 12 months, up from 41% the month prior. The percentage who say home prices will decline was 10% and those that believed prices will stay the same was 40%.
- 11% of Americans say mortgage rates will go down in the next 12 months, down from 12% the month prior. Thirty-nine percent of Americans believe mortgage rates will rise.
- 86% of Americans who say they’re not concerned about losing their job over the next 12 months.
- 28% of Americans who say their household income is significantly higher than it was 12 months ago; 10% say their household income is significantly lower.
If you have any questions about buying or selling a home during the coronavirus crisis, please feel free to contact me at MagnumOne Realty office in Roseville (916-899-6571) . You can also reach me by emailing to firstname.lastname@example.org (DRE# 01418097)