Let Valuation Tech Help Improve Your Collateral Valuation

Join this webinar to learn how technological advancements in valuation provide solutions to help lenders and servicers deliver more comprehensive offerings to their clients.

Talking proptech with FinLedger Director Holden Page

In this episode, Page discusses the hottest topics coming across FinLedger’s news desk. Topics include: the online banking market, what’s happening in the proptech space and recent private market deals.

With a reinvigorated CFPB, what’s next for the NYDFS?

While the CFPB is reinvigorated under the Biden administration, there’s plenty of room for it to retake a leading role and coordinate with the NYDFS.

Does your CRM hurt or help the customer experience?

In real estate, data is king. The more you leverage your own data the better off your agents or loan officers will be because they’ll be able to identify, target and create better customer experiences.

InvestmentsMortgageReal EstateAppraisals & Valuations

Consumers have never felt better about housing than they do right now

Fannie Mae survey shows consumer confidence reaches all-time high

Consumers’ faith in the housing market is stronger than it’s ever been before, according to a newly released survey from Fannie Mae.

Fannie Mae’s latest Home Purchase Sentiment Index shows that consumer confidence in housing hit an all-time high in February, continuing a climb in confidence that began in January.

January’s version of the Home Purchase Sentiment Index showed that consumers’ confidence in housing improved for the first time in five months, and February’s survey saw consumers’ sentiments improve even more.

According to the Fannie Mae report, the Home Purchase Sentiment Index increased by 5.6 percentage points in February to 88.3, setting a new all-time high.

That’s also up 5.6 percentage points from the same time period last year.

Overall, five of the six components that make up the HPSI were up, with three hitting record highs.

According to the report, the net share of Americans who said that now is a good time to buy rose by 11 percentage points, and the net share of consumers who believe that now is a good time to sell also rose by 7 percentage points.

Additionally, consumers also reported increased confidence about not losing their jobs, with the net share climbing by 9 percentage points.

The survey also showed that the share of respondents reporting that their household income is significantly higher than it was 12 months ago increased by 4 percentage points.

More Americans also expect home prices to go up, with the net share rising 3 percentage points. And the net share of consumers who think mortgage rates will go down over the next 12 months held steady for the third consecutive month.

“The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011. Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

“Preliminary research results from our team find that millennials are accelerating the rate at which they move out of their parents’ homes and form new households,” Duncan continued. “However, continued slow supply growth implies continued strong price appreciation and affordability constraints facing millennials and first-time buyers in many markets.”

Broken down further, the components of the HPSI showed that:

  • The net share of Americans who say it is a good time to buy a house rose 11 percentage points to 40%, rebounding from last month’s survey low.
  • The net percentage of those who say it is a good time to sell increased by 7 percentage points to 22%, reaching a new survey high.
  • The net share of Americans who say that home prices will go up increased by 3 percentage points in February to 45%.
  • The net share of those who say mortgage rates will go down over the next 12 months remained constant for the third consecutive month at -55%.
  • The net share of Americans who say they are not concerned about losing their job rose 9 percentage points to a new survey high of 78%.
  • The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 4 percentage points to 19% in February, continuing the increase from January and reaching a new survey high.

Most Popular Articles

Will we ever see a “normal” housing market again?

The question on everyone’s minds: When will this hot housing market cool down? Arch MI investigates this and more in its Spring Housing and Mortgage Market Review.

Jun 22, 2021 By

Latest Articles

Mortgage rates jump back up to 3.02%

The average 30-year fixed-rate mortgage rose nine basis points from the week prior to 3.02%, according to data released Thursday by Freddie Mac‘s PMMS. This is the first time in ten weeks mortgage rates have risen above 3%.

Jun 24, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please