According to a recent MReport, consumers in October had a more optimistic view of both buying and selling homes. Consumers also reported a less positive outlook on personal finances and employment. MReport made these conclusions from a survey conducted by Fannie Mae’s Home Purchase Sentiment Index. Doug Duncan, the Senior Vice President and Chief Economist at Fannie Mae stated, “to date, the HPSI has recovered over 60% of its COVID-19 pandemic loss, reflecting the bright spot that the mortgage market has been in the economy. The evolution of the pandemic and the 2020 election outcomes may have longer-lasting and unexpected impacts on consumer sentiment, as we saw following the 2016 elections, and we expect both factors will shape the housing market over the coming months”. The Housing Purchase Sentiment Index increased by .7 points in October, which was the third month in a row to increase.
WHAT DID THE REPORT FIND?
Fannie Mae highlighted several components to the October increase in their report. The first revelation in the report was that there was a 9% increase in the amount of Americans who believe it is a good time to buy a home. Similarly, there was an increase in consumers who believe it is a good time to sell their home. The percentage of respondents who say it is a good time to sell a home increased from 56% to 59%. Next, it was reported that the number of respondents who believe home prices will go up in the next year decreased by roughly 1%. The report included the mortgage rate expectations from consumers. The percentage of respondents who say mortgage rates will decrease in the next year remained the same at 11%. Additionally, the amount of people who think mortgage rates will go up decreased by 6%. The next component that was analyzed was consumers concerns regarding employment. The percentage of people concerned about losing their job increased from 16% to 21%. Finally, the report asked about Americans’ household income.The percentage of respondents who say their household income is significantly higher than it was 12 months ago decreased from 24% to 23%, while the percentage who say their household income is significantly lower increased from 17% to 20%.
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