Fannie Mae said its September National Housing Survey noted a rebound in consumer housing optimism after a dip was recorded in August. Most indicators have returned to the modestly positive trend the survey had recorded throughout the early part of the year. Fannie Mae said it was probably the turbulent world political situation that weighed down American attitudes toward the housing market over the past two months.
After dropping by 3 percentage points in August the share of survey respondents who said it is a good time to buy a house rose 4 points in September to 68 percent and the share who said they would prefer to buy a home for their next move ticked back up to 66 percent after a three point drop. Those who think it is a good time to sell eased up 1 point to 39 percent.
There was a bit more optimism about housing prices as well. Forty-five percent of respondents now expect further price hikes over the next 12 months compared to 42 percent in August. The scale of the expected increase however has been fairly consistent over the last three or four months.
Expectations about mortgage rates have experienced a bit of a sea change in the last two months. In July 54 percent of respondents thought rates would increase; that dropped to 50 percent in August and another 5 percentage points in the current survey. This recent sharp drop is on top of a slower downward trend that brought the share of those expecting higher rates down from the 63 percent level in September 2013.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”