April increased by 2.2 percentage points over March, and five of the index’s six components also went up.
Americans who said that now is a good time to purchase a home increased by five percentage points to 35%; those who believed that home prices will go up rose by one percentage point to 45%; and the net share of those who said mortgage rates will decrease over the next 12 months increased by three percentage points.
“The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3% sales growth in 2017,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”
In addition, the net share of Americans who said they were confident about keeping their jobs rose by seven percentage points to 77%, and those who said their household income was significantly higher than it was 12 months ago increased by two percentage points to 13%.
Meanwhile, Americans who believed it was a good time to sell declined by five percentage points to 26% in April from an all-time survey high the month prior.
Home purchase sentiment down for fifth consecutive month
April saw an improvement in housing sentiment after a dismal March decline, according to the latest Fannie Mae Home Purchase Sentiment Index.