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Americans Have Never Felt Better About Buying A House Than They Do Right Now

August8, 2019 In July, housing condence increased as moreAmericans reported now is a good time to buy, according to Fannie Mae’s latest Home Purchase Sentiment Index

According to the GSE’s report, sentiment rose by 2 2 points in July to 937 Not only is this a 72-point increase from last year’s level, but it also marks a new survey high

Fannie Mae SeniorVice President and Chief Economist Doug Duncan said despite ongoing housingsupply and aordabilitychallenges, the HPSI reached a new high thanks to strong job condence and favorable mortgagerate expectations

“Consumers appear to have shaken o a winter slump in sentiment amid strongincome gains, ” Duncan said “Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the aordable category”

That being said, Duncan warns that recent financialmarketevents could weigh on consumer sentiment looking ahead

Despite this warning, Fannie’s index reveals increases in the “GoodTime to Buy” and “Good Time to Sell” components, which rose by 3 and one percentage points, respectively

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Complementing that rise, more consumers said they now expect mortgage interest rates to fall within the next 12 months, as that component rose one percentage point in July, the report notes

Last week, Freddie Mac reported that the 30-year, xed-rate mortgage averaged 375%, falling signicantly from its 2018 rate of 4 60%

“Mortgage rates have essentially stabilized over the last two months, which reects the recovery and improvement in the economy from the malaise earlier in the year,” Freddie Mac Chief Economist Sam Khater said. “Going forward, the combination of low mortgage rates, tightlabormarket and high consumerconfidence should set up the housing market for continued improvement in homesales heading into the late summer and early fall”

NOTE: Fannie Mae’s Home Purchase Sentiment Index is constructed from six questions, gauging the current views and forward-looking expectations of consumers navigating the housing market

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