Fannie Mae is out with a boost of consumer confidence when it comes to the housing marketing and economy. Per its latest report, the Fannie Mae Home Purchase Sentiment Index increased 3.5 points in January to 70.7—its highest level since March 2022.
Additionally, an all-time survey-high 36 percent of respondents indicated that they expect mortgage rates to go down in the next 12 months, while 28 percent expect them to go up, and 35 percent expect rates to remain the same.
However, consumer perceptions of homebuying conditions remain overwhelmingly pessimistic, with only 17 percent of consumers indicating it’s a good time to buy a home. Overall, the Index is up 9.1 percent year-over-year.
“For the first time in our National Housing Survey’s history, a greater share of consumers believe mortgage rates will decrease over the next year, rather than increase,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Consumers also expressed greater confidence in their job situations this month, another sign that housing sentiment may continue to improve in 2024.
“A large majority still think home prices will either increase or stay the same,” Duncan continued. “The ‘good time to buy’ component continues to hover near its historical low; and fewer than one-in-five respondents indicated that their household income was significantly higher year over year, matching a survey low.”