The net share of Americans who said March was a good time to buy a home decreased, according to the Fannie Mae.
Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased 3.8 percent in March to 84.5, with five of the six components measured by the index falling.
“Home purchase sentiment gave back some of the gains accumulated over the prior two months that sent the index to its survey high in February. Strong home price appreciation has turned into a double-edged sword for the housing market as it boosted the net share of consumers saying it’s a good time to sell to a record high, surpassing the plunging good time to buy indicator for the first time in the history of the survey,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a press release.
“In addition, the net share of consumers who expect mortgage rates to rise over the next year exceeded that experienced during the 2013 taper tantrum. However, the housing market could get some tailwinds from a seasonal rise in for-sale inventory, particularly as some sellers seek to lock in profits from recent rapid home price gains. The market could also get a boost from homebuyers who decide to jump into the market before rates rise further,” Duncan added.
The HPSI found that the net share of Americans who reported that now is a good time to buy fell 10 percent, while the net share reporting that now is a good time to sell increased 9 percent.
Consumer confidence about the stability of their jobs decreased (down 8 percent); as did the share of respondents reporting that household income is significantly higher than it was 12 months ago (down 8 percent).
The net share of Americans who say that mortgage rates will decrease over the next twelve months fell 5 percent to a new survey low.