Survey: Mortgage Rate Spike Changing Consumer Attitudes

Julie C. Nichols General

The M Report – Tory Barringer

Responses to Fannie Mae’s latest National Housing Survey indicate potential homebuyers may enter the purchase market sooner rather than later. According to the GSE’s findings, 57 percent of respondents expect prices will continue to rise in the next 12 months—a survey high. The share of those expecting prices will fall stayed flat at 7 percent. The average price change expectation was 3.8 percent, a slight drop from May’s high of 3.9 percent. More notable was the pickup in mortgage rate expectations. The number of consumers expecting rates will rise over the next 12 months spiked 11 percentage points to 57 percent, another survey high. Only 4 percent said they expect rates will drop. Meanwhile, sentiment toward both buying and selling fell back slightly, with 72 percent of respondents saying now is a good time to buy and 36 percent saying it’s a good time to sell.

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