Real Estate

Nine in 10 Americans agree: May was a bad time to buy a home.

High mortgage rates and home prices are creating challenges for many homebuyers, and 86% said May was a bad time to buy — a new high in a 2010 Fannie Mae survey.

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Nearly nine in 10 Americans polled by mortgage giant Fannie Mae said May was a bad time to buy — a record high since a 2010 survey.

Fannie Mae Monthly National Housing Survey It also found that nearly two-thirds of household financial decision makers believed it was a good time to sell.

But high mortgage rates and home prices are creating affordability challenges for many homebuyers, and many have given up hope that they will come down in the next year, said Doug Duncan, chief economist at Fannie Mae. .

Doug Duncan

“While many respondents expressed hope at the beginning of the year that mortgage rates would decline, that has not happened, and current sentiment reflects frustration with an overall lack of purchasing power,” Duncan said. said, Statement. “This is the clearest evidence yet that our ‘good time to buy’ is down in a new survey this month.”

Source: Fannie Mae National Housing SurveyMay 2024.

Only 14 percent of those polled in May said it was a good time to buy, down from 20 percent in April, down from a survey last seen in November 2023 that said May 79. Above the percentage was a bad time to buy. A new survey recorded a record 86 percent, the net share who said May was a good time to buy fell 13 percentage points from April to May -72 percent, survey less.

“On the other hand, homeowners’ perception of home selling conditions has eased only slightly and is still largely positive after a steady increase over the past few months,” Duncan said. “This shows us that despite the so-called ‘lock-in effect,’ some homeowners may want or need to sell their homes quickly for a number of non-financial reasons, leading to near The list may increase in the near future.”

Source: Fannie Mae National Housing SurveyMay 2024.

While 64 percent of those polled in May said it was a good time to sell, down from 67 percent in April — the highest level in nearly 2 years.

With the percentage who said it was a bad time to sell up from 32 percent to 35 percent, the net share of those who said May was a good time to sell fell 6 percent from April to 29 percent.

Source: Fannie Mae National Housing SurveyMay 2024.

The Fannie Mae Home Purchase Sentiment Index (HPSI), which combines six questions from the National Housing Survey into one number, fell 2.5 points from April to May to 69.4. While that’s 3.8 points higher than a year ago, the index was often above 90 before the pandemic.

The HPSI dipped at the start of the pandemic, then started to deteriorate again when low mortgage rates boosted sales, and again in 2022 when mortgage rates started to rise again. The HPSI hit an all-time low of 56.7 in October 2022.

Three of the HPSI’s six components declined in May — buying conditions, selling conditions, and job loss concerns — while two components improved: changes in household income and home price outlooks. The outlook for consumer mortgage rates remained unchanged from April to May.

Source: Fannie Mae National Housing SurveyMay 2024.

The net share of consumers who said home prices will rise in the next 12 months rose 2 percentage points to 25 percent from April to May. More than eight in 10 of those polled expected home prices to either rise (42 percent) or stay the same (40 percent). Only 18 percent said they expected house prices to fall over the next 12 months.

Source: Fannie Mae National Housing SurveyMay 2024.

While 25 percent of those polled in May said they expect mortgage rates to fall in the next 12 months, that’s down from 26 percent in April. With the percentage who expected mortgage rates to rise also falling to 31 percent, the net share of those who thought mortgage rates would go down was unchanged at -6 percent.

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