Let’s start with a little context.
Since 2010, each month, Fannie Mae survey’s 1,000 people. Among the many questions asked, the answers to six questions determine the Home Purchase Sentiment Index (HPSI).
The six questions are as follows:
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In general, do you think this is a very good time to buy a house, a somewhat good time, a somewhat bad time, or a very bad time to buy a house?
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In general, do you think this is a very good time to sell a house, a somewhat good time, a somewhat bad time, or a very bad time to sell a house?
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During the next 12 months, do you think home prices in general will go up, go down, or stay the same as where they are now?
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During the next 12 months, do you think home mortgage interest rates will go up, go down, or stay the same as where they are now?
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How concerned are you that you will lose your job in the next twelve months? Are you very concerned, somewhat concerned, not very concerned, or not at all concerned that you will lose your job in the next twelve months?
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How does your current monthly household income compare to what it was twelve months ago?
And now the most recent newsworthy results:
According to the most recent survey results (released yesterday), consumer confidence ticked up in October, hitting 74.6 (the highest it’s been since early 2022). The index reflects a solid year-over-year improvement, showing the market has bounced back from all-time lows two years ago. However… only 20% of consumers feel it’s currently a good time to buy, with prices being the largest barrier to entry (no surprise there considering rates have ticked up in to the 7s again).
Interestingly, sentiment about selling has held steady, with 64% believing it’s a favorable time to sell, while fewer are pessimistic about buying.
Expectations around home prices show mixed opinions:
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39% believe prices will rise next year
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23% anticipate a drop
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38% see stability
Mortgage rate expectations are also leveling off, with fewer people anticipating big jumps or drops in rates. Meanwhile, job security has boosted confidence, with nearly 80% of employed consumers feeling secure in their jobs.
While optimism is definitely on the rise, high costs and rate fluctuations remain challenging for many would-be buyers, and some are turning to rental options while saving up for a future home purchase. If you’re considering buying, selling, or just exploring options, we’d welcome a discovery call over coffee. We’d be glad to set up some time to chat.
