The survey showed that consumer sentiment about several aspects of the housing market had dropped from the previous month. The index measuring consumer attitudes about whether now is a good time to buy a home dropped from 73 in June to 69. Similarly, the index measuring consumer attitudes about whether now is a good time to sell a home dropped from 54 to 48.
Also notable was a decrease in consumer confidence in the housing market's long-term strength. Consumers were asked whether they thought home prices would increase, decrease, or stay the same over the next 12 months. In June, 33% said prices would increase, while only 27% said prices would increase in the survey conducted in July.
The survey also showed a decline in consumer confidence in the economy. The index measuring consumer sentiment about economic conditions over the past year dropped from 74 to 70, while the index measuring consumer sentiment about economic conditions over the next year dropped from 73 to 70.
The survey also looked at other factors that can impact the housing market. For example, respondents were asked whether they expected to be able to afford a home in the next twelve months if they wanted to buy one. The index measuring consumer expectations for affordability dropped from 62 to 59. Similarly, the index measuring consumer sentiment about whether their own financial situation would improve over the next 12 months dropped from 72 to 69.
The survey also found that consumers are increasingly concerned about rising interest rates. The index measuring consumer sentiment regarding interest rate changes over the next 12 months dropped from 60 to 56.
Finally, the survey found that consumer attitudes regarding the overall direction of the economy over the next 12 months had declined from 55 to 51.
Overall, the survey indicates that consumer attitudes towards the housing market have declined significantly over the past month. This could be due to a variety of factors, including increasing concerns over affordability, uncertainty about the economic outlook, and increasing worries about rising interest rates. It is possible that this decrease in consumer confidence could adversely affect the housing market. It remains to be seen whether this trend will continue or if consumer sentiment will rebound.
Summary:
A recent survey conducted by National Mortgage News and sponsored by Fannie Mae has shown that consumer attitudes toward the housing market have reached a two-year low. The survey showed that attitudes regarding the current time to buy or sell a home, price increases over the next year, economic trends, affordability, and interest rates all decreased from the previous month. These declines in consumer sentiment could have a negative impact on the housing market, though it remains to be seen whether this trend will continue or not.
This article was contributed on Nov 29, 2023
