Sentiment in the U.S. housing market continued to decline in September as rising mortgage rates took a toll, according to the Fannie Mae Home Purchase Sentiment Index. The index dropped 2.4 points to 64.5, with just 16% of consumers saying now is a good time to buy a home, matching an all-time low set last year, according to Insider.
High mortgage rates surpassed high home prices as the top reason for pessimism among homebuyers, and sellers also cited high mortgage rates as a primary reason for not selling their homes, suggesting a housing inventory shortage could persist and continue to drive up costs.
"Mortgage rates persistently over 7 percent appear to be deepening the malaise consumers feel about the home purchase market," Fannie Mae chief economist Doug Duncan said in a statement. "In fact, high mortgage rates surpassed high home prices as the top reason why consumers think it's a bad time to buy a home, a survey first."
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