Americans expect higher home prices

WASHINGTON, DC – Fannie Mae’s Home Purchase Sentiment Index reached an all-time survey high in May. The share of consumers reporting their income was significantly higher increased 7 percentage points, and the share of consumers who expect home prices will rise rose 5 percentage points.

“Continued home-price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year.”

• The net share of Americans who say that it is a good time to buy a house fell 1 percentage point to 29 percent. The percentage who said it is a good time to sell fell two points to 13 percent, but 52 percent still believe it is a good time to sell, and that is an all-time survey high.
• The net share of Americans who say that home prices will go up rose 5 percentage points to 42 percent, continuing the rising trend that began in March.
• The net share of Americans who say they are not concerned with losing their jobs fell 2 percentage points to 72 percent.
• The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 7 percentage points to 18 percent, reaching a new all-time survey high.