Fannie Mae's monthly Home Purchase Sentiment Index measures how Americans feel about the housing market and economy. It asks respondents whether they think it's a good time to buy or sell a house, whether they believe home prices and mortgage rates will rise or fall, and how they feel about their job and financial situation.
In May, the index was relatively unchanged from the month before but saw an increase in the number of participants who said they think now is a good time to sell a house. In fact, 76 percent of survey respondents said they feel the market is right for sellers. Buyers, on the other hand, didn't fare as well.
Doug Duncan, Fannie Mae's senior vice president and chief economist, says Americans are feeling pessimistic about buying. “Respondents' pessimism regarding home-buying conditions carried forward into May, with the percentage of respondents reporting it's a bad time to buy a home hitting a new survey high,” Duncan said. That pessimism is due, in part, to recent mortgage rate increases.
But while spiking rates may have dampened buyer optimism, respondents don't expect them to continue. Survey results show an increasing share of participants who said they think rates will fall in the coming months.
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