According to Fannie Mae, housing market sentiment climbed in December, driven by a strong labor market and low mortgage rates. The Home Purchase Sentiment Index rose to a reading of 91.7 last month, nearing the all-time high of 93.8 set in August.
Both sellers and buyers are optimistic about the state of the housing market. The share of people who believe now is a good time to buy a home jumped 16 percentage points, while those who think now is a good time to list a home increased 7 points.
Historically low mortgage rates are expected to be a major driver of a strong housing market in 2020. Experts predict that rates will remain favorable throughout the year.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.