Americans Expect Mortgage Rates To Stay Low
Fannie Mae's Home Purchase Sentiment Index is a monthly measure of Americans' feelings about the housing market. The survey asks respondents for their perception of the market, their job security and financial health, whether they think it's a good time to buy or sell a house, mortgage rates, home prices, etc. According to the most recent release, Americans are feeling optimistic and it's mostly due to favorable mortgage rates. Doug Duncan, Fannie Mae's senior vice president and chief economist, says falling rates have helped keep sentiment high. “Growing expectations that mortgage rates will remain flat or decline are reflected in the HPSI's latest reading, which is now at a survey high even though other indicators of economic and housing market sentiment are flat to negative,” Duncan said. The number of participants who said they believe mortgage rates will fall further over the next year was up 11 percent from the month before and 35 percent from last year. Additionally, the share of respondents who believe home prices will rise over the next 12 months fell 1 percent. In short, Americans are feeling positive about affordability conditions and expect them to improve or stay relatively steady heading into 2020. More here.