Consumers feel good about the state of housing
Confidence in the housing market remains near an all-time high. According to new data, consumers are especially optimistic about mortgage rates and home prices.Verify your new rate (Feb 24th, 2020)
Positive about their prospects
According to the latest Home Purchase Sentiment Index from Fannie Mae, consumers are feeling pretty good about their housing prospects.
They’re particularly optimistic about mortgage rates. The share of consumers who think mortgage rates will go down in the next 12 months is up 24 percentage points since this time last year.
Consumers also have high hopes for home prices. The number of Americans who expect prices to go up over the next year is down, decreasing 3 percentage points since last month and 8 points since 2018.
All in all, about half of consumers say it’s a good time to sell a house, while one in four say it’s a good time to buy.Verify your new rate (Feb 24th, 2020)
The feeling isn’t mutual
It’s not good news all across the board, though. According to Doug Duncan, Fannie Mae’s senior vice president and chief economist, sentiments vary greatly by locale.
“Regional variations in housing optimism appear to be tied to a divergence in housing affordability,” he said. “For example, home purchase sentiment is higher in the Midwest and South than in the West and, to a lesser extent, the Northeast, where the lack of entry-level inventory and the resultant strong price appreciation has had a more profound impact on affordability.”
Still, with mortgage rates low — and expected to stay there — it could help even those higher-priced regions down the line.
“With fewer consumers expecting rates to jump back up, thereby creating less urgency to buy now, we expect housing market activity to remain stable,” Duncan said.
Get today’s mortgage rates
Are you feeling good about your homebuying prospects? Then shop around and see what rates you qualify for today.Verify your new rate (Feb 24th, 2020)