Home purchase sentiment reached an all-time survey high this summer, an indication that Americans are feeling more upbeat about the housing market, according to Fannie Mae.
Overall sentiments rose 3.3 points to a reading of 86.5. Each of the index’s six components including selling outlook and personal finances – also rose last month. One interesting potential bright note for housing in July survey is that younger households may finally be shifting toward buying rather than renting in greater numbers. Whether the shift in sentiment in July toward buying rather than renting on their next move holds up or is a temporary reaction to their view that rents are on the rise and mortgage rates will be lower, we will see.
Here are some findings from the latest survey:
* 33% of Americans say it’s a good time to buy a house, a 1 percentage increase over June.
* 20% of Americans say it’s a good time to sell a home, a 2 percentage point increase from June (a new survey high).
* 41% of Americans believe home prices will rise, an 8 percentage point increase from June.
* 36% of Americans believe mortgage rates will drop over the next year.
* 69% of Americans say they are not concerned with losing their job, a 1 percentage point increase from June.
* 11% of Americans say their household income is significantly higher than it was 12 months ago, a 3 percentage point increase from June’s sharp decline
Source: Fannie Mae