Fannie Mae’s monthly survey found less pessimism over potential job losses and an increasing number of buyers (up 3%) and sellers (up 3%) who think it’s a good time enter the market. Overall, the index rose 3.3 points to 77.5, though a year ago it was 93.8.
WASHINGTON – With high buyer demand for homes, it’s not too surprising Americans expressed optimism about home selling. But even with frustration over the lack of listings, Americans also say it’s a good time to buy – in fact, more Americans are bullish over buying than selling.
Fannie Mae’s Home Purchase Sentiment Index, which reflects the attitudes of more than 1,000 respondents toward housing, shows that consumer sentiment over five of six housing indicators increased in August. Consumers are more optimistic than previously over buying and selling, and fewer are worried about job losses.
The buyer optimism stems from near-record low mortgage rates, which are helping to “restore much of consumers’ positivity on whether it is a good time to buy a home, while also improving the good-time-to-sell sentiment,” says Doug Duncan, Fannie Mae senior vice president and chief economist. “The August survey was conducted as consumers continue to face uncertainty regarding schools’ and business’ reopening plans, and as the CARES Act $600-per-week income supplement expired.”
However, Fannie Mae’s Home Purchase Sentiment Index is still down year-to-year. It rose 3.3 points in August to a reading of 77.5, but it’s still down 16.3 points compared to August 2019.
Source: Fannie Mae
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