Fannie Mae says consumers are less confident in a home purchase, but Google Trends show many are still interested. The percentage of respondents to Fannie Mae's survey who think it is a bad time to buy increased from 27% to 38%, but that lagging confidence doesn't mean consumers are closing the doors on purchasing a home. Last week alone, Google searches for “refinance home loan calculator” grew by 4,000%, according to CNBC. Other searches pointed toward interest from first-time buyers, such as “process of buying a house,” which jumped by 950%.
Some of the drop can be attributed to a rise in Covid-19 cases in July and growing concern over more parts of the economy shutting down again. Home prices were also a factor.
“Supply constraints appear to be applying upward pressure to consumers’ home price expectations, which in turn has contributed to both a sharp reversal in optimism about whether it is a good time to buy a home and further improvement in home-selling sentiment,” said Doug Duncan, chief economist at Fannie Mae.
Advertisement
Related Stories
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders
Market Data + Trends
January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market
A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand
