Consumers have become the most pessimistic about housing since 2011, when home prices bottomed in the aftermath of the global financial crisis, data from the Federal National Mortgage Assn. show.
Fannie Mae’s Home Purchase Sentiment Index, or HPSI, dropped to the lowest level in more than a decade, as consumers expressed pessimism about home buying prospects. The index, which reflects consumers’ views on the housing market, has fallen from roughly 76 to 63 year over year, according to a release Monday.
Sentiment hasn’t been as bad since the post-crisis era, when home values plunged as borrowers struggled to make payments, leaving millions facing foreclosure.The Southern California housing market is cooling and forcing buyers and sellers to adjust. Here is what you should know if you are in the market.
But this time, the concern is different — this is an affordability crisis. As the Federal Reserve raises its benchmark interest rate, rates on a 30-year fixed-rate mortgage have almost doubled year over year, standing at 5.43% in late July compared with 2.97% a year earlier, putting homeownership out of reach for more and more Americans.
Four of the index’s six components dropped month over month, including views on buying and selling conditions, home price outlook and job-loss concerns, Fannie Mae said. Consumers were most concerned about buying conditions. That concern changed the most year over year, with 76% of respondents saying it’s a bad time to buy.
Thank a democrat for destroying our cities and our country
So , it is terrible news that housing might become more affordable?