The Fannie Mae Home Purchase Sentiment Index decreased in September, according to Florida Realtors. This drop shows that there is some caution the housing market from both the sides of buyers and sellers. Consumer caution in the housing market showed in the drop of 4 of the 6 components of HPSI. The most significant decrease was in people who expect mortgage rates to go down over the next 12 months. This fell 6 percentage points. The net share of consumers who said it was a good time to buy a home also dropped, as did the net share of consumers reporting confidence about not losing their job over the next year.
“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,” says 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,” he added.
Maybe more positively, the net percentage of those who say it is a good time to sell a house remained at 15% in September, and 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%.
While nationally there is caution in the housing market, it is still important to look closely at your local market. If you have questions about the market, or about buying and selling the Miami area, please reach out to a RE/MAX Paradise agent today.