Fannie Mae’s monthly survey of homebuying sentiments showed Americans’ perceptions of the housing market continued to diverge last month, pointing the way towards a potential easing of demand for homes even as average 30-year mortgage interest rates remain at or near 3 percent.

The National Housing Survey interviews a 1,000-person representative sample of American household financial decision-makers in the first half of every month, largely via cell phone calls.

The share of respondents who said June was a bad time to buy a home rose to 64 percent, from 56 percent in May, while the number who said it was a good time to buy slid down from 35 percent to 32 percent.

At the same time, the share of respondents who said that June was a good time to sell rose to 77 percent, up from 67 percent in May, while the share who said it was a bad time to sell dropped from 25 percent to 15 percent.

The positive and negative readings set records, Fannie Mae chief economist Doug Duncan said in a statement.

“Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions,” Duncain sad. “While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowners than other consumer segments who have already established homeownership.”

Despite the uptick in Americans’ pessimism, purchase mortgage applications remained relatively steady through June, the Mortgage Bankers Association’s weekly surveys show.

Fannie Mae: Americans More Pessimistic About Buying

by Banker & Tradesman time to read: 1 min
0