Americans' view of the housing market has plateaued, according to the latest results of Fannie Mae's Home Purchase Sentiment Index. The monthly index is based on a survey that asks participants for their feelings about buying and selling a home, their financial situation and job, and where they think prices and mortgage rates are headed. In August, the index was unchanged from one month earlier.
Doug Duncan, Fannie Mae's senior vice president and chief economist, says market sentiment is divided between buyers and sellers. “From a historical perspective, the current housing market is unusual, as demonstrated in part by the HPSI and its recent plateauing,” Duncan said. “Given the significant home price appreciation and rapid rise in mortgage rates, it is very much a tale of two markets, at least from a consumer perspective.”
In other words, the market is good for sellers while, at the same time, challenging for home buyers. Survey results reflect that reality. In fact, the number of respondents who say now is a good time to buy a home remains low but the share of respondents who say it's a good time to sell increased in August, rising to 66 percent.