Fannie Mae Survey Shows Buyer Optimism Rising

Thinking about buying a home this year? You’re not alone—and it looks like more people are starting to feel better about the market.

According to Fannie Mae’s latest National Housing Survey, released in June, overall confidence in the housing market rose in May. Their Home Purchase Sentiment Index (HPSI) jumped to 73.5, which is up 4.3 points from April and 4.1 points higher than this time last year.

What’s changing in homebuyer sentiment?

The survey examined people’s attitudes toward aspects such as buying and selling homes, the direction of prices and mortgage rates, and their level of job and income security.

Here are some of the big takeaways:

• More people say it’s a good time to buy a home. While most still think it’s a tough time to buy, the number who feel positive went up a bit.
• Sellers are feeling more confident. More homeowners think now is a good time to sell, which could mean more homes coming onto the market soon.
• Home prices are expected to rise. Nearly half of the people surveyed think home prices will go up over the next year, while fewer expect prices to fall.
• People think mortgage rates might come down. This is one of the biggest shifts in the survey. If rates do fall, that could make monthly payments more manageable.
• Job worries are easing. Fewer people are worried about losing their jobs, which helps build confidence when making big decisions, such as buying a home.

The one downside? Fewer people said their income had gone up in the past year, which could still make affordability a challenge.

What this means for homebuyers

If you’ve been waiting to buy a home, now is a smart time to keep a close eye on the market. Seller confidence is on the rise, which could lead to more homes coming up for sale. This might help ease the tight inventory that many buyers have been facing lately.

Mortgage rates have been moving up recently, but there are signs they could ease soon. If rates do come down, monthly payments could become more affordable, making homeownership more within reach for many people.

At the same time, home prices continue to rise in many areas. That means waiting too long might mean paying more for the same home later on. Affordability is still a real hurdle, especially for first-time buyers or those with tighter budgets.

Ultimately, if mortgage rates improve and more homes hit the market, your chances of finding a home that fits your budget and needs could improve significantly.

The bottom line

Housing sentiment is heading in a better direction. If you’re thinking about buying, keep an eye on rates, watch for new listings, and be ready to move when the timing feels right for you.

Not sure where to start? Talking with a lender can help you understand what you can afford and how changing market trends might work in your favor. Click below to explore your mortgage options.