Fannie Mae’s Home Purchase Sentiment Index rebounded in November nearing a survey high that was set in August as more Americans show greater confidence in home buying. The index, based on consumer surveys showed the greatest increases in the percentage of Americans who believe now is a good time to buy and those who believe home prices will continue to rise over the next 12 months.
“Over the past year, a growing share of consumers say that they expect mortgage rates to remain steady,” says Doug Duncan, Fannie Mae’s chief economist and senior vice president. “While low rates have helped boost housing affordability compared to last year, the [index] has increased only moderately in that time frame. This may be due in part to the ongoing challenge of tight housing supply, especially in the starter home market.