As the housing market grows increasingly competitive and unaffordable, homebuyers are becoming more weary. According to Fannie Mae’s monthly Home Purchase Sentiment Index, the sentiment among homebuyers has fallen to its lowest point in the 10-year history of the index.
The number of Americans who believe now is a good time to buy a home fell from 53 percent to 47 percent as of April, while the percent of those who say it is a bad time to buy increased from 40 percent to 48 percent.
Rising prices and a limited selection of homes were cited as the top reasons driving down buyer sentiment. Potential home buyers within incomes between $50,000 and $100,000 were particularly pessimistic about the housing market largely because housing inventory and competition are especially tight on homes within affordable range for these incomes.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.375 percent.
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