Fannie Mae's monthly Home Purchase Sentiment Index is based on a survey which asks Americans for their view of the housing market and their personal financial situation. The survey gauges how respondents feel about buying or selling a home, mortgage rates, home prices, their job security, and income. In November, the index was relatively unchanged, as Americans' perception of the market has remained stuck since the first half of the year.
A majority of respondents still say they believe it's a good time to sell a home, but the number who say it's time to buy remains low. A rising number of participants see mortgage rates falling over the next 12 months, but home price expectations were relatively unchanged, with 41 percent saying they believe prices will rise.
Doug Duncan, Fannie Mae's senior vice president and chief economist, says sentiment will likely remain low until the number of homes for sale rises. “The lack of housing inventory is likely to remain a challenge for some time, and home purchase sentiment may continue to be suppressed as a result,” Duncan said. “As our forecast indicates, we believe it will be a couple years before home sales return to more normal, pre-pandemic levels.”
[Source: Fannie Mae]
