Each month, Fannie Mae surveys Americans and asks them for their opinion on whether it’s a good time to buy or sell a home, mortgage rates, home prices, their job and financial situation. The resulting Home Purchase Sentiment Index is a good gauge of how Americans are feeling about market conditions and the overall economy. According to the most recent release, survey respondents are feeling more confident and it’s mostly due to a sense that mortgage rates are going to fall. In fact, a record share of respondents said they expect rates to fall over the next year and it helped push the number who say it’s a good time to buy 6 percent higher. Mark Palim, Fannie Mae’s senior vice president and chief economist, says optimism has risen as Americans have adjusted to market conditions. “Notably, this improvement in sentiment continues a trend that began about two and a half years ago likely due in part to consumers’ slow-but-steady acclimation to current market conditions,” Palim said. Respondents are also feeling optimistic about their financial situation and home prices, both of which they expect to improve in 2025. (source)
