WASHINGTON—Consumer sentiment regarding both buying and selling a home, among other components, decreased in February, as seen in a 3.7 percentage point decline in the Fannie Mae Home Purchase Sentiment Index to 85.8.
NAFCU Chief Economist and Vice President of Research Curt Long attributed part of the decrease to rising interest rates and limitations in the new tax bill.
"Home sales have declined recently, and many have chalked it up to poor weather," Long said. "But rising mortgage rates and limitations on mortgage interest and property tax deductions in the new tax bill may be contributing, as well. While it may take some time to sort out the precise causes, housing demand seems to be on the wane."
The net share of those who reported that now is a good time to buy a home decreased five percentage points compared to January; the share who said it's a good time to sell a home decreased two percentage points. The net share of respondents who said home prices will go up in the next 12 months decreased seven percentage points during the month, while the net share of consumers who said mortgage rates will go down over the next 12 months also decreased seven percentage points.
Other highlights from the February data show:
- The net share of consumers who said household income is significantly higher than it was 12 months ago increased one percentage point
- The net share who said they are not concerned about losing their job decreased two percentage points