Unless you were a seller over the past 14-24 months, “confidence” may not exactly have been high for those in the market. However, with inflation and mortgage rates on the rise—along with inventory—the tide may finally be turning.
According to Fannie Mae’s latest monthly housing survey, the share of consumers who think it’s a good time to buy a home increased from the month prior. Only 20 percent of those surveyed in June thought it was a good time to buy, but that is up from the all-time low of 17 percent in May.
Also in June, the percentage of consumers who believe it’s a “Good Time to Sell” fell from 76 percent to 68 percent.
It’s not all roses, though. The survey also found that 81 percent of consumers surveyed thought the economy was on the wrong track—the highest survey result for that question since 2010.
“This month’s [survey] reflects macroeconomics and personal financial concerns, with housing sentiment additionally diminished by the recent rapid increases in mortgage rates,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Interestingly, consumers’ perceptions of home-selling conditions declined meaningfully in June, returning to pre-pandemic levels. This was particularly true for homeowner respondents.
“Approximately half of all respondents indicated that it would be ‘difficult’ to get a mortgage, the highest such percentage since 2014,” Duncan continued. “As a whole, this month’s results are consistent with our forecast of a slowing housing marketing through the rest of this year and next.”