The latest consumer sentiment index from Fannie Mae shows that home buyers don’t seem to be deterred by rising prices and rates, at least for now. The net share of survey respondents who said now is a good time to buy rose 10 percentage points in March month over month and is now at 32 percent, according to Fannie Mae’s Home Purchase Sentiment Index, based on a poll of about 1,000 consumers.
Overall, the index rose 2.5 percent in March to a reading of 88.3. Two of the six components registered the largest increases last month: the share of consumers who said it’s a good time to buy and those who were optimistic about selling. The net share of consumers who reported it was a good time to sell a home rose 3 percentage points in March.
The index’s “recent run of volatility continued in March, as it recovered last month’s loss and remained within the five-point range of the past twelve months,” says Doug Duncan, Fannie Mae’s chief economist. “The primary driver of this month’s increase was a sizable rise in the net share of consumers who think it’s a good time to buy a home, which returned the indicator to its year-ago level. On the whole, a slight majority of consumers continue to express optimism regarding the overall direction of the economy.”
Here’s a closer look at findings from Fannie Mae’s Home Purchase Sentiment Index in March, based on a survey of 1,000 consumers:
- 32%: The net share of Americans who say now is a good time to buy a home (up 10 percentage points from February).
- 39%: The net share of consumers who say now is a good time to sell a home (up 3 percentage points and matching a survey high from June 2017).
- 42%: The net share of Americans who say home prices will drop 3 percentage points, which is continuing a decreasing trend from last month.
- 71%: The net share of Americans who say they are not concerned about losing their job, unchanged from February’s reading.
- 17%: The net share of consumers who say their household income is significantly higher than it was 12 months ago, also unchanged from February’s reading.
Source: Fannie Mae
