Home Buying Confidence Springs Back

Dated: 05/10/2017

Views: 470

Confidence in home-buying is springing back, with more buyers optimistic about their ability to move off the fence and into the market, according to the recently released Fannie Mae Home Purchase Sentiment Index® (HPSI) for April.

The HPSI bounced back 2.2 percentage points to 86.7 last monthup from 84.5 in March. Those surveyed for the Index who reported it being “a good time to buy a house” climbed 5 percentage points to 35 percent—but those who reported it being “a good time to sell” shifted 5 percentage points in the opposite direction, down to 26 percent.

“The Home Purchase Sentiment Index returned to its longer-term tread line after reclaiming ground lost last month,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high.”

Those surveyed who believe home prices will rise inched up one percentage point to 45 percent. More of those surveyed believe mortgage rates will go down in the next 12 months, ticking up three percentage points to -57 percent.

On a wider level, just 13 percent of those surveyed reported that their earnings are “significantly higher” than one year ago. In many housing markets, incomes have yet to catch up to home prices.

Seventy-seven percent of those surveyed, however, are “not concerned about losing their job”—a sense of security that can be a prerequisite for home-buying or -selling.

“On balance, housing continues on a gradual track,” Duncan says.

Source: Fannie Mae

Blog author image

David Sarnowski

David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is a 15 year resident of the New Jersey Gold Coast, with the local knowledge n....

Want to Advertise on this Site?

Latest Blog Posts

Why Should One Consider Refinancing Their Mortgage Now

Why Should One Consider Refinancing Their Mortgage Now? Refinancing a mortgage is a golden opportunity to lock in today’s low interest rate for the next 15 or 30 years. While interest rates now

Read More

What You Need To Know About Mortgage Insurance

What You Need to Know About Mortgage Insurance Homeowners insurance and title insurance may not be the only kinds of insurance you need when you buy a home. Many buyers also have to purchase

Read More

Whats Ahead For Mortgage Rates This Week February 12th 2018

What’s Ahead For Mortgage Rates This Week – February 12th, 2018 Jerome “Jay” Powell was sworn in as Chair of the Federal Reserve amidst wild fluctuations in U.S. stock markets. Analysts

Read More

Down Payments 101 Is It Worth It To Put More Than 20 Percent Down

Down Payments 101: Is It Worth It to Put More Than 20 Percent Down? Are you thinking of buying a new home this spring or summer? If so, you’re not alone. Many thousands of individuals and

Read More