Fannie Mae's monthly Home Purchase Sentiment Index is based on a survey which asks Americans for their opinions on the housing market and economy. The survey covers everything from home prices and mortgage rates to job security and household income in an effort to determine how consumers feel about buying a home. According to the most recent results, Americans are feeling cautious. In fact, the number of respondents who say it's a good time to buy a home was down 1 percent month-over-month, while the share who say it's a good time to sell fell 2 percent.
Doug Duncan, Fannie Mae's chief economist and senior vice president, says Americans are pessimistic about affordability. “More consumers than not see home prices rising further; and slightly more consumers think mortgage rates will increase, rather than decrease, over the next 12 months,” Duncan says. But are they wrong? Well, according to Fannie Mae's forecast, they might be. Its most recent outlook calls for decelerating home price growth and falling mortgage rates over the next year.
[Source: Fannie Mae]
