Fewer potential homebuyers think that now is a good time to buy according to a new report from Fannie Mae
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Fewer potential homebuyers think that now is a good time to buy according to a new report from Fannie Mae.
Its Home Sentiment Index was down 3.7 points in February, following gains in the previous month; with the net share of respondents who felt it was a good time to buy falling 5 percentage points (22%), and the net share of those who said it was a good time to sell falling 2 percentage points (36%).
"Volatility in consumer housing sentiment continued into February, with the new tax law beginning to impact respondents' take-home pay and the stock market creating negative headlines due to early-month turbulence," said Doug Duncan, senior vice president and chief economist at Fannie Mae.
More people believe that they will be paying more for their mortgage over the next 12 months as the net share who think mortgage rates will decrease in that time fell 7 percentage points (57%).
“Consumers' expectations for higher mortgage rates suggest that consumers expect the Fed to hike rates a few more times in 2018. We will continue to track how consumer housing attitudes trend in the coming months as these various market forces play out," added Duncan.
The net share of Americans who say home prices will go up decreased 7 percentage points to 45% in February.
There was a slight decrease (2 percentage points) in the net share of those who are not worried about losing their job (71%); while those that said their income has significantly increased in the past 12 months increased 1 percentage point (17%).
