{"id":2287,"date":"2023-05-09T22:26:56","date_gmt":"2023-05-09T22:26:56","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/05\/09\/potential-home-buyers-are-more-optimistic-on-housing-market-for-one-big-reason-fannie-mae-says\/"},"modified":"2023-05-09T22:26:56","modified_gmt":"2023-05-09T22:26:56","slug":"potential-home-buyers-are-more-optimistic-on-housing-market-for-one-big-reason-fannie-mae-says","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/05\/09\/potential-home-buyers-are-more-optimistic-on-housing-market-for-one-big-reason-fannie-mae-says\/","title":{"rendered":"Potential Home Buyers Are More Optimistic on Housing Market for One Big Reason, Fannie Mae Says"},"content":{"rendered":"

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Consumers expect mortgage rates to drop, so they\u2019re feeling a lot more optimistic about the housing market, according to a Fannie Mae poll published Monday.<\/p>\n

After the U.S. Federal Reserve\u2019s\u00a0rate increase last week<\/a>, the Fed Chair signaled a potential pause in hikes. Rates\u00a0dipped after the news<\/a>, and economists are expecting\u00a0mortgage rates to gradually decline<\/a>\u00a0over the course of this year, and into 2024.<\/p>\n

Consumers see this as a good sign for mortgage rates. The monthly\u00a0Fannie Mae Home Purchase Sentiment Index<\/a>\u00a0rose in April to the highest level since May 2022.<\/p>\n

In April, 22% of consumers polled said they expect rates to go down, compared to just 12% last month.<\/p>\n

In April, 22% of consumers polled said they expect rates to go down, compared to just 12% last month.<\/p>\n

The increase in overall home-buying sentiment is \u201cprimarily driven by consumers\u2019 more optimistic mortgage rate expectations,\u201d Doug Duncan, senior vice president and chief economist at Fannie Mae, said in a statement.<\/p>\n

People believe mortgage rates will fall over the next year, which \u201ccould be due to a combination of factors,\u201d Duncan said, \u201cincluding an awareness of decelerating inflation, market suggestions that monetary conditions will ease in the not-too-distant future, and, of course, actual mortgage rate declines during the month.\u201d<\/p>\n

The share of respondents who said it\u2019s a good time to buy a home rose to 23% in April, from 20% the previous month.<\/p>\n

But would-be buyers are still frustrated by how expensive it is to buy a home. Many respondents said they expect home prices to go up in the next 12 months. The share of those who believe in rising home prices was 37% in April, up from 32% the previous month.<\/p>\n

High home prices<\/h2>\n

Even though buyers are feeling more optimistic in April, this may \u201cprove to be temporary,\u201d Duncan said, \u201cas consumers continue to report uncertainty about the direction of home prices.\u201d<\/p>\n

High home prices are the chief reason why consumers believe it\u2019s a bad time to buy a home, he noted.<\/p>\n

The median price of an existing home was $375,700, as reported by the\u00a0National Realtors Association\u00a0<\/a>in April. A new home was $449,800, according to the\u00a0Census Bureau<\/a>.<\/p>\n

\u201cUntil affordability improves for a larger swath of the homebuying public,\u201d Duncan added, \u201cwe believe home sales will remain subdued compared to previous years.\u201d<\/p>\n

The frenzied pace of home sales has slowed considerably after the Fed hiked interest rates around this time last year. Home sales fell 22% in March, as compared to the previous year, the NAR said.<\/p>\n

\u201cHousing has just switched from where it was like a full-on party with champagne to a more austere market,\u201d Bess Freedman, CEO of Brown Harris Stevens, told MarketWatch in an episode of\u00a0Barron\u2019s Live<\/a>.<\/p>\n

With higher interest rates and historically high home prices, \u201cpeople are much more cautious and everything is a lot more expensive.\u201d<\/p>\n

The post Potential Home Buyers Are More Optimistic on Housing Market for One Big Reason, Fannie Mae Says<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Getty Images Consumers expect mortgage rates to drop, so they\u2019re feeling a lot more optimistic about the housing market, according to a Fannie Mae poll published Monday. After the U.S. Federal Reserve\u2019s\u00a0rate increase last week, the Fed Chair signaled a potential pause in hikes. Rates\u00a0dipped after the news, and economists are expecting\u00a0mortgage rates to gradually…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":2288,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2287","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/2287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=2287"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/2287\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/2288"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=2287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=2287"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=2287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}