WASHINGTON–The Fannie Mae Home Purchase Sentiment Index increased 1.6 points to reach a new all-time high of 85.3 in May.
The increase followed an 18-month low of 80.2 in March.
According to Fannie Mae, May’s numbers were driven by a seven-percentage-point net increase in the number of consumers who reported their income was significantly higher than it was a year before. There were also increases in the number of consumers expecting home prices to go up (5%) and mortgage interest rates to go down (3%) over the next year.
“Fannie Mae’s housing survey reflects the mix of trends facing prospective home buyers,” said NAFCU Chief Economist and Director of Research Curt Long. “Low unemployment, strengthening wage growth and low mortgage rates are supportive of increased demand, yet rising home prices and steep down payment requirements are sidelining many.”
The number of consumers who think it’s a good time to buy fell by one percentage point to an all-time survey low of 29%, making May the second consecutive month to have an all-time low in that category.