According to Fannie Mae, consumer confidence in the housing market has reached a new low.

A monthly survey by Fannie Mae found that only 16% of consumers believe that it is a good time to buy a home right now.

According to a Fannie Mae survey, a larger proportion of consumers, 37%, said they anticipate a decline in home prices over the next 12 months.

Americans are feeling more pessimistic about the state of the housing market as a result of rising mortgage rates, high home prices, and economic uncertainty generally.

A monthly survey by Fannie Mae found that only 16% of consumers believed that it is a good time to buy a home right now. Since the survey’s start in 2011, that is the lowest share. Additionally, 59% to 51% fewer respondents said they believe the current housing market is favorable for home sales.

The survey by Fannie Mae examines sentiment regarding home prices, mortgage rates, and the job market in addition to buying and selling. They are all combined into one number, which also decreased for the eighth consecutive month and is currently at a new low.

37% of consumers said they anticipate a decline in home prices in the upcoming year. Comparatively, 35% in September. More people think that mortgage rates will increase.

The rapidly rising cost of borrowing money caused the housing market to cool off in the early summer. The standard interest rate for the well-known 30-year fixed mortgage began the year close to a record low, at about 3%. According to Mortgage News Daily, it passed 6% by June and is currently just over 7%.

Doug Duncan, the chief economist at Fannie Mae, stated in a release that “continued affordability constraints reduce homebuyer demand, and homeowners become reluctant to sell at potentially reduced prices, we expect home sales to slow even further in the coming months, consistent with our forecast.”

According to Black Knight, home prices continued to decline in September, albeit at a slightly slower monthly rate than they did in July and August. The current price decline since June is 2.6%, the first three-month drop since 2018 when interest rates also increased. Since early 2009, this three-month period has been the worst for housing prices. However, prices were still 10.7% higher in September than they were in the corresponding month in 2016.

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