Both would-be buyers and would-be sellers are feeling the heat from the housing market.
According to Fannie Mae’s Home Purchase Sentiment Index, a monthly housing survey, 66% of respondents said now is a bad time to purchase a property, up 2% from June, while 75% said now is a good time to sell, down 2% from June as well. However, consumers are feeling positive about housing prices, as there was a decrease in respondents who said that home prices will rise over the next year. Forty-six percent said prices will increase, compared to 48% the previous month and 21% think home prices will go down, which remained stable.
Can historically low mortgage rates continue? Most respondents don’t think so. Fifty-seven think they will go up, while 31% believe they will remain the same and then 5% believe rates will continue to drop over the next year. Respondents are still generally optimistic about the job market, 84% said they are not concerned with losing their job over the next year, down from 88% in June, while 13% said they are “concerned,” an increase of 2% over June. The majority (56%) of households reported their income has remained the same over the past year, while 14% said their income has decreased significantly over the past year. However, 27% said their income is significantly higher than it was a year ago. Forty-three percent said they expect their financial situation to get better, while 38% expect it to remain the same and 16% expect it to get worse.
Respondents who would buy a home if they were moving increased to 69%, while those who said they would rent instead rose to 28%.