Fannie Mae’s monthly Home Purchase Sentiment Index surveys Americans and asks them for their perception of the housing market and economy. Survey respondents are asked whether they think now is a good time to buy or sell a home, what they expect mortgage rates and home prices to do, and how they feel about their job and finances. In June, the index fell from the month before, as more participants expressed caution about the current housing market. Still, their long-term expectations were positive. In fact, the number who believe home prices and mortgage rates will continue to climb over the next 12 months fell from the month before. The net share of Americans who say prices will go up fell 7 percent and the number who say mortgage rates will decline increased 4 percent. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the results match Fannie’s Mae’s forecast. “As a whole, this month’s HPSI results are consistent with our forecast of a slowing housing market through the rest of this year and next,” Duncan said. (source)
SOCIAL MEDIA EDIT: A new survey shows a growing number of Americans expect mortgage rates to fall over the next 12 months. What do you think?