“Obviously sentiment is regional; parts of Michigan and Florida and [other markets] haven’t rebounded as well … but overall sentiment is a strong as it’s been since 2006/2007 just before the downturn,” Roger Kumar, president of Trident Mortgage Group in San Diego, told Mortgage Professional America. “Where I am, the market is strong and sentiment is good.”
Fannie Mae’s Home Purchase Sentiment Index fell from 83.8 to 83.2, indicating consumers are slightly more hesitant to make large purchases, such as homes.
Still, sentiment is strong – especially compared to just a few years ago.
In October 2011, the index was at 61.2.
“The income growth necessary for renewed momentum in housing market sentiment remains elusive, even though consumers’ confidence in their job security continues to strengthen,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers' net view on whether their household income has improved over the last year is down once again this month.”
According to Duncan, some consumers may be hesitant to purchase a home until more improvement to wages and salaries is seen.
“Still, the HPSI remains close to its near all-time high level of the past four years, and, given the strong October jobs report, suggests that any cooling in near-term activity, if it occurs, should be moderate,” Duncan said.
Despite a slight hit to consumer confidence in Fannie Mae’s Home Purchase Sentiment Index, brokers in most markets will likely have no issue continuing to attract business.