Survey: buyers discouraged by current market conditions

Survey: buyers discouraged by current market conditions

Survey: buyers discouraged by current market conditions
Challenges facing home buyers like high home prices and scarce inventory are taking their toll on house hunters. This is reflected in the latest Fannie Mae Home Purchase Sentiment Index for May which shows that just 35 percent of consumers believe now is a good time to buy a home. This is a tumble from the 47 percent recorded in April.

Related, the percentage of consumers who say it is a bad time to buy a home increased from 48 percent in April to 56 percent last month.

“Consumers appear to be acutely aware of higher home prices and the low supply of homes, the two reasons cited most frequently for that particular sentiment,” said senior vice president and chief economist at Fannie Mae, Dough Duncan. “However, despite the challenging buying conditions, consumers do appear more intent to purchase on their next move, a preference that may be supported by the expectation of continued low mortgage rates.”

Those looking to purchase a home will find that today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 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.