Consumers are becoming less optimistic about mortgage rates decreasing, as Fannie Mae’s latest survey shows a significant drop in those expecting rates to fall—from 45% in November to 35% in January. Meanwhile, 32% now believe rates will rise. Economists warn that rates may stay elevated due to the Federal Reserve’s cautious approach to rate cuts and economic uncertainties. Despite this pessimism, Fannie Mae’s Home Purchase Sentiment Index slightly increased, as more people expect home prices to rise. Additionally, concerns about rising rent costs are growing, with 65% of respondents predicting higher rental prices. Did you know that the average homeowner’s net worth is 42 times that of a renter? Homeownership builds significant, long-term wealth and is a strategic move towards securing your financial future.
As home inventory increases this Spring, buyers may be more inclined to jump into the market as they settle into the current mortgage rate environment and see that home prices are going to continue to rise. The Fannie Mae Pulsenomics home price expectations survey which surveys the top 150 market analysts/economists in the US, forecast around 4% appreciation for 2025 and between 30%-35% appreciation over the next five years.
Source : https://bit.ly/42Nc8eF
By: Jon Iacono