U.S. consumers are becoming a bit cautious when it comes to real estate. According to a new report by Fannie Mae, the Home Purchase Sentiment Index® declined 2.2 points to 82.8 in September.
Americans are beginning to think it is not that great of a time to buy a home. Fannie Mae reported that the net share of Americans who say it is a good time to buy a house fell by 5 percentage points to 29% to match a previous all-time low reached in May.
15% of the people surveyed still think it is a good time to sell, and Americans who say that home prices will go up fell 1 percentage point from last month to 34%.
The net share of those who say mortgage rates will go down over the next twelve months fell 6 percentage points to negative 44%.
The net share of Americans who say they are not concerned with losing their job fell 3 percentage points to 70%.
The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 2 percentage points to 12%.
“The decline in the HPSI over the past two months from the survey-high in July of 86.5 adds a note of caution to our moderately positive housing outlook,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Downside changes came in particular from the HPSI components mortgage rate direction and good time to buy a house. In addition, the starter home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment.”