Builders are more confident, and now, so are buyers. After a dip in autumn, buyer confidence is up 5.3 points above 2018’s rate. It seems that the continued low mortgage rates are soothing some of buyers’ fears, but a lack of affordable inventory still hangs over people’s heads. Experts say that buying will pick up in the coming months due to this increase in confidence, but not at any dramatic pace. After 2019, however, drama is the last thing the housing market needs.
In November, consumers felt better about the housing market as a slight boost of housing affordability spurred an increase in consumer confidence, according to Fannie Mae’s Home Purchase Sentiment Index.
The government-sponsored enterprise’s report revealed that sentiment rose by 2.7 points in November to 91.5. This rate not only moved back up towards August’s survey high, but also remains 5.3 points above 2018’s rate.
Although November’s increase highlights improvements in the market, Doug Duncan, Fannie Mae’s senior vice president and chief economist, warns confidence is still dampened by several factors including supply and home price appreciation.
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