connie vallone

Consumer Caution over Housing Surfaces in September

In Buying a Home, Home Values, Houston Energy Corridor, Houston Real Estate Agent, Real Estate Investment, Selling your home on November 2, 2016 at 2:53 pm

The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 2.2 points to 82.8 in September, moving further off of survey highs. Consumer caution surfaced in the September HPSI, in which four of the six components decreased during the month. The largest decrease was seen in the net share of consumers who expect mortgage interest rates to go down over the next 12 months, which fell 6 percentage points. This was followed by a 5 percentage point drop in the net share of consumers who say now is a good time to buy a home and a 3 percentage point drop in the net share of consumers reporting confidence about not losing their job over the next year. Household Income was the only HPSI component to increase in September with slightly more consumers than the previous month reporting that their household income is significantly higher than it was 12 months ago.

“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.”

Fannie Mae’s September 2016 Home Purchase Sentiment Index (HPSI) decreased 2.2 percentage points in September to 82.8. Overall, the HPSI is down 1.0 point since this time last year.

Breaking from the increasing trend of the last few months, the net share of Americans who say it is a good time to buy a house fell by 5 percentage points to 29 percent to match a previous all-time low reached in May.

The net percentage of those who say it is a good time to sell a house remained at 15 percent in September. The net share of Americans who say that home prices will go up fell 1 percentage point from last month to 34 percent. The net share of those who say mortgage rates will go down over the next twelve months fell 6 percentage points to negative 44 percent. The net share of Americans who say they are not concerned with losing their job fell 3 percentage points to 70 percent. 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 percent.

For more information, visit www.fanniemae.com RISMedia Tracking Snippet *** Do Not Remove *** End RISMedia Tracking Snippet

Reprinted with permission from RISMedia. ©2016. All rights reserved.

If you are looking for Classic Real Estate Services from concept to closing, please contact Connie Vallone by phone (713) 249-4177, email connie@knowsrealestate.com or visit my website at www.houstonenergycorridorhomes.com or www.vallonehomes.com .

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: