The Fannie Mae Home Purchase Sentiment Index dipped by 3.1 points - a decrease from the all-time high matched the month prior. The mortgage giant attributes the decline on diminished confidence in both buying and selling a home as well as concerns pertaining to job security.
The net share of respondents to the National Housing Survey who said it is currently a good time to sell a home fell by 8 points from September while the net share of those who stated it is a good time to buy dropped 6 points. They survey results also show that the number of Americans who are not concerned about losing their job fell by 5 percentage points.
Senior vice president and chief economist at Fannie Mae, Doug Duncan, stated that the decline is typical seasonal change.
"The modest decrease in October's Home Purchase Sentiment Index is a shift we expect at this time of year moving out of the summer home-buyer season," said Duncan. "Indicators of broader economic and personal financial sentiment remain relatively stead."
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.