American Confidence in Housing at an All-Time High

Dated: 08/12/2019

Views: 87

American Confidence in Housing at an All-Time High

American Confidence in Housing at an All-Time High | MyKCM

Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.

Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed:

  • The share of Americans who say it is a good time to buy a home increased from the same time last year.
  • The share of those who say it is a good time to sell a home increased from the same time last year.
  • The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year.
  • The share of Americans who say mortgage rates will go down over the next 12 months increased dramatically (24 percentage points) from the same time last year.

The day after the index was released, Freddie Mac also announced the 30-year fixed-rate mortgage rate fell to its lowest level in three years.

Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae explained the uptick in the index:

“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges. Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.”

Bottom Line

Consumers are feeling good about the real estate market. Since Americans are not worried about their jobs, see mortgage rates near an all-time low, and believe it is a good time to buy, the housing market will remain strong for the rest of the year.

Latest Blog Posts

The Cost Across Time [INFOGRAPHIC]

The Cost Across Time [INFOGRAPHIC]Some Highlights:With interest rates around 3.66%, now is a great time to look back at where they’ve been over the past few decades. Comparatively, they&rsquo

Read More

VA Home Loans by the Numbers [INFOGRAPHIC]

VA Home Loans by the Numbers [INFOGRAPHIC]Some Highlights:The Veterans Administration (VA) Home Loan is a benefit that is available to more than 22 million veterans and 2 million active

Read More

Forget the Price of the Home. The Cost is What Matters.

Forget the Price of the Home. The Cost is What Matters.Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate.&

Read More

The #1 Reason to List Your House in the Winter

The #1 Reason to List Your House in the WinterMany sellers believe spring is the best time to put their homes on the market because buyer demand traditionally increases at that time of year. What

Read More