Fannie Mae on Tuesday released its home purchase sentiment index for September, which showed increased caution in home-purchase sentiment among consumers.
Curt Long, chief economist for the National Association of Federal Credit Unions (NAFCU), said the increased caution was at odds with most other consumers surveys that showed general improvement in consumer confidence.
“With the surge in home prices and the potential impact from future rate hikes, the potential certainly exists for housing demand to recede in the near future,” Long said.
The survey found that the home purchase sentiment index for September decreased by 2.2 points to 82.8, down 1 point from the same month the previous year. Fannie Mae said the largest decrease was seen in the net share of consumers who expect mortgage interest rates to decrease over the next 12 months, which fell by 6 percent.
The survey also found a 5 percent drop in the share of consumers who believe now is a good time to buy a home.
Additional findings in the survey include a net decrease of 1 percent of Americans who say that home prices will go up, a net decrease of 6 percent of Americans who say mortgage rates will go down and a net decrease of 3 percent of Americans who say they are not concerned with losing their jobs.