WASHINGTON–Fannie Mae’s Home Purchase Sentiment Index hit an all-time high in February.
According to Fannie Mae, the number of Americans who say now is a good time to buy rose 11 percentage points, while the net share who believe that now is a good time to sell increased by seven percentage points. Consumers also demonstrated greater confidence about not losing their jobs, with the net share rising nine percentage points, Fannie Mae said.
Overall, the share of respondents reporting that their household income is significantly higher than it was 12 months ago increased by four percentage points. In addition, more Americans expect home prices to continue to increase, with the net share rising three percentage points. The net share of those who think mortgage rates will go down over the next 12 months remained unchanged for the third consecutive month.
"Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers," said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a statement. "Continued slow supply growth implies continued strong price appreciation and affordability constraints facing Millennials and first-time buyers in many markets.”
The positive sentiments come at the same time the Fed has indicated it also plans to raise rates, which could put a damper on affordability for many.