WASHINGTON—Consumer sentiment regarding both buying and selling a home decreased 1.5 percentage points in July to 86.8, according to the Fannie Mae Home Purchase Sentiment Index.
NAFCU Chief Economist and Vice President of Research Curt Long largely attributed the decrease to a lack of supply.
"Housing continues to muddle along with the main obstacle being a lack of supply," Long said. "There are signs that construction activity is increasing, which should help to ease those constraints."
The net share of those who reported that now is a good time to buy a home decreased 7 percentage points to 23%; the share who said it’s a bad time to buy reached a new survey high, and the share who said it’s a good time to buy reached a new survey low.
Specifically, the net share of those who say it is a good time to sell a home decreased 11 percentage points to 28%, NAFCU reported, adding, “On a positive note, the net share of survey participants who are not concerned about losing their jobs increased 9 percentage points to 75%.”
Other highlights from the July data show:
- The net share of consumers who said household income is significantly higher than it was 12 months ago decreased 1 percentage point to 16%.
- The net share of survey participants who expect home prices to go up increased 1 percentage point to 47%.