Consumers expect mortgage rates to drop, so they’re feeling a lot more optimistic about the housing market, according to a Fannie Mae FNMA poll published Monday.
After the U.S. Federal Reserve’s rate increase last week, the Fed Chair signaled a potential pause in hikes. Rates dipped after the news, and economists are expecting mortgage rates to gradually decline over the course of this year, and into 2024. Last month, 22% of consumers polled said they expect rates to go down, compared to just 12% last month.
The share of respondents who said it’s a good time to buy a home rose to 23% in April, from 20% the previous month. “Until affordability improves for a larger swath of the homebuying public,” Duncan added, “we believe home sales will remain subdued compared to previous years.”