When is it a Good Time to Buy a Home? NOW or NOT?

A record percentage of consumers (79%) surveyed by Fannie Mae say “not now.”  High home prices and rising mortgage rates have pessimism at an all-time high. Fannie Mae issues a monthly HPSI (Home Purchase Sentiment Index,) a composite index designed to track consumers’ housing-related attitudes, intentions, and perceptions, using six questions from the National Housing Survey® (NHS). Fannie Mae May 2022 National Housing Survey Data Release

“Consumers’ expectations that their personal financial situations will worsen over the next year reached an all-time high in the May survey, and they expressed greater concern about job security,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist.

Duncan continued: “These results suggest to us that increased mortgage rates, high home prices, and inflation will likely continue to squeeze would-be homebuyers – as well as those potential sellers with lower, locked-in mortgage rates – out of the market, supporting our forecast that home sales will slow meaningfully through the rest of this year and into next.”

For the full HPSI press release from Fannie Mae click here:  Would-Be Homebuyers Feeling Squeeze of Higher Home Prices and Mortgage Rates | Fannie Mae

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