Many consumers grew more optimistic about the housing in April, rebounding from March’s dip in confidence, according to the Fannie Mae Home Purchase Sentiment Index.
The index increased 2.2 percentage points in April to 86.7, and five of the six components saw an increase.
Americans who said now is a good time to sell a home was the only component to decrease, dropping five percentage points to 26%, however those who said now is a good time to buy a home increased five percentage points to 35%.
Consumers were also more optimistic about the stability of their jobs, with that component increasing by seven percentage points to 77%. Respondents who reported a household income that’s significantly higher than 12 months ago increased by two percentage points to 13%.
Americans who said mortgage rates will go down over the next 12 months rose by three percentage points to -57% and the share of those who say home prices will increase jumped one percentage point to 45% in April.
“The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “This is aligned with our market forecast of about 3% sales growth in 2017.”
“Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high,” Duncan said. “On balance, housing continues on a gradual growth track.”