Fannie Mae’s latest Home Purchase Sentiment Index reports that the percentage of consumers who expect mortgage rates to decrease during the coming year is significantly lower than in January 2016. 35 percent of those surveyed believe that home prices will continue to increase. Interestingly, 38 percent said that it’s currently a bad time to sell a home.
Analysts point out that the downturn in buyer sentiment due to rising interest rates could be offset by “pro-growth” policies from the incoming administration resulting in stronger income growth and job security. According to the Index, 68 percent of those responding say they are not concerned with losing their jobs in the coming year.
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