Home Purchase Sentiment Skyrocketing to New High

    Fannie Mae’s Home Purchase Sentiment Index is a unique thumb on the pulse of the U.S. housing market, and reached an all-time high in May of 2016.

    7 percent of consumers reported their income was higher than 12 months before, indicating income growth for buyers nationwide. 5 percent of consumers believe that home prices will continue to rise over the next 12 months, while 3 percent of consumers believe that mortgage rates will continue to go down over the next year. With more income, lower mortgage rates, and rising home prices, buyers are more motivated than ever.

    52 percent of consumers continue to believe that it is a good time to sell a home, with this aspect of the Fannie Mae Home Purchase Sentiment Index 1 point higher than this time a year ago. 29 percent of consumers believe it is a good time to buy, further providing evidence that limited inventory is creating a very active buyers market.

    Additionally, 42 percent of consumers believe home prices will continue to rise and 43 percent believe mortgage rates will continue to fall. With 72 percent of Americans reporting they are not concerned about losing their jobs, the data indicates that the real estate market will continue to thrive throughout 2016.

     

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