When potential homebuyers arrive at a property for sale in Columbus, Ohio, they see an “open house” sign.
Ty Wright | Bloomberg | Bloomberg | Getty Images
Rising mortgage rates, rising home prices and overall economic uncertainty have made Americans feel more pessimistic about the state of the housing market.
Only 16% of consumers said now is a good time to buy a home in October, according to Fannie Mae’s monthly survey. This is the lowest percentage since the survey began in 2011. The percentage of respondents who think now is a good time to sell their home has also decreased from 59% to 51%.
Fannie Mae’s research doesn’t just focus on sales, it tests sentiment about house prices, mortgage rates and the job market. All of this rolled into her one number, which is also her eighth straight month of decline and is now at an all-time low.
A higher proportion of consumers (37%) say they expect home prices to fall over the next 12 months. This compares to 35% in September. Many believe that mortgage rates will rise.
Rapidly rising interest rates sparked a red-hot housing market in early summer. By June he was over 6% and now he’s just over 7%, according to the Mortgage News Daily.
Fannie Mae Chief Economist Doug Duncan wrote: release.
Home prices fell again in September, according to Black Knight, but at a slower monthly pace than in July and August. Since 2018, when interest rates have also risen, prices have fallen 2.6% since June, the first drop in three months. This is his worst three-month rise in home prices since early 2009. However, September prices remain he 10.7% higher than the same month last year.