Consumer confidence bolstered by low mortgage rates

Consumer confidence bolstered by low mortgage rates

Consumer confidence bolstered by low mortgage rates
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.