The number of Americans who say that now is a good time for home buying increased in June, the latest survey says.
The latest Home Purchase Sentiment Index from Fannie Mae has shown that after reaching a survey low in April, consumers' confidence rebounded in June as HPSI rises 9.0 points to 76.5. However, the index is still down 15.0 compared to the same period last year.
Four out of six Home Purchase Sentiment Index components recorded month-over-month increases as more consumers showing positive views on both home buying and selling conditions, as well as price appreciation.
Is it a good/bad time to purchase a house?
The share of respondents that say that it is a good time to purchase a home has risen from 52 percent to 61 percent. The percentage of those who say that it is a bad time for home buying declined to 27 percent from 39 percent. Thus, the net share increased by 21 percentage points in favor of those who say that it is a good time to purchase.
Is it a good/bad time to sell a house?
Respondents who say that it is a good time to sell a home likewise increased to 41 percent from 32 percent. Conversely, those who say that it is not a good time to sell decreased from 62 percent to 48 percent. Thus, the net share of those who say that it is a good time to sell increased by 23 points.
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Home price expectations
As for the home price expectations, the share of respondents who say that home prices will grow in the next 12 months jumped 34 percent from 26 percent, while those who say that home prices will drop have declined to 25 percent from 35 percent. Thirty-one percent of respondents say that home prices will remain unchanged. Last month, the percentage of the share was 30 percent.
Mortgage expectations
Of the total survey respondents, 17 percent say that mortgage rates will drop in the next 12 months, decreasing from last month's 25 percent. The percentage of those respondents who say that mortgage rates will increase in the next 12 months went up 32 percent from 25 percent. The respondents who say that mortgage rates will not move dropped to 42 percent from 42 percent.
Job concerns
From a 75 percent share of respondents, consumers who are not concerned about losing their job in the next 12 months dropped to 74 percent. Respondents who say they are concerned about losing their job went up to26 percent from 24 percent. The net share of Americans that are saying they are not concerned about losing jobs dropped by three percent.
Household income
Twenty-five percent of respondents reported "significantly higher" household income compared to 12 months ago, a rise from 18 percent last month. Meanwhile, 16 percent say that their household income is "significantly lower." That percentage represents a drop from 19 percent last month. The net share of Americans that say that their household income is significantly higher compared to one year ago increased by 10 percent.
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