Homebuyer demand continues to outpace listings despite consumers feeling increasingly negative about the economy.
Disconnect Between Positive Home Purchase Sentiment & Low Consumer Confidence in Economy
The latest monthly National Housing Survey and its Home Purchase Sentiment Index (HPSI) indicate that homeowners and renters think it’s a good time to sell a home. In fact,77%, a survey high, of these survey respondents think now’s a good time to sell.
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On the other hand, just 30% of these same survey respondents thought that now was a good time to buy a home due to all-time high prices and meager listings. That being said, these respondents said they’d rather buy than rent if they decided to or needed to move.
Economy on Wrong Track
65% of survey respondents said they thought the economy was on the wrong track and only 25% thought the economy was on the right track.
Fannie Mae Chief Economist Doug Duncan said, “We believe the uptick in negative economic sentiment is likely a function of ongoing supply chain disruptions and inflation concerns. However, while economic uncertainty could potentially dampen mortgage demand over the long term, we believe current conditions remain conducive to home purchase activity, as demand for homes continues to far outstrip the supply available for sale.”
Consumers Expect Mortgage Rates to Increase Over Next 12 Months
This National Housing Survey conducted between October 1 and October 23 and analyzed by Fannie Mae economists found that an increasing majority, 55%, of consumers expect that mortgage rates will climb in the next 12 months. So far, anyway, the Federal Reserve has said that mortgage rates are to remain at rock bottom levels.
Thanks to Inman.
