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Consumer confidence waning

Posted by Mehran Aram on Wed, Nov 14, 2018 @ 05:11 AM

Americans are feeling uneasy about the current state of the housing and economy. Fannie Mae’s latest Home Purchase Sentiment Index fell two points in October to a reading of 85.7. While any readings over 50 indicate positive sentiment, last month’s decline brings the index to its lowest point since last fall.

“After hitting a survey high during the spring home buying season, the HSPI has trended downward, declining in October to its lowest level in a year,” said Doug Duncan, Fannie Mae’s chief economist. “The net share of consumers who said it’s a good time to buy a home is near the second lowest reading in the survey’s history.”

Consumers who report that conditions are prime to sell a home also dropped. Still, when asked about the state of the overall economy, American’s remain positive. The share of consumers who think the economy is on the right track reached a new survey high.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.325 percent and the 5-year ARM is averaging 4.325 percent.

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Topics: Fannie Mae, Mortgage rates, consumer confidence, consumer