Housing-market sentiment is nearing an all-time-low as Americans fret over the outlook for mortgage rates and employment, according to Fannie Mae.
The government-sponsored mortgage giant said that its Home Purchasing Sentiment Index had fallen to 3.6 points in February, clocking in at 58. It's the first fall decline in the reading in three months, bringing the index back near its all-time-low of October 2022 when theThe average rate on a 30-year mortgage on Wednesday was about 7.1%, according to Bankrate.
"The decline was partly driven by a substantial decrease in consumers' sense of home-selling conditions, with most respondents who indicated it's a 'bad time to sell' citing unfavorable economic conditions as the primary reasons for that belief," Fannie Mae chief economist Doug Duncan said in aThat's partly because of the Federal Reserve's aggressive rate hikes to control inflation, which have influenced mortgage rates to hover around twenty-year high.
"This month's survey indicated an increase in job security concerns, which we'll continue to monitor closely, since labor market uncertainty could play yet another factor in slowing housing activity," he added. Markets are now expecting even steeper rate hikes from the Fed after Chairman Jerome Powell's hawkish testimony to lawmakers this week, with expectations for a 50 basis-point increase in March rising after his remarks.
“Fret”. Thank Biden. He caused this.
Good employment & normal mortgages (they were extra low for a while)?