Consumer confidence in the housing market hit its lowest level of 2018 in October, according to the latest survey data by Fannie Mae. Buyer confidence dropped five percent, the second-lowest level in the survey's history.
By contrast, consumer confidence in housing was surging in spring 2018. The rise of interest rates seems to have put a damper on confidence. However, confidence in the economy being on the right track continues to gain, and reached a new high in October, CNBC reports. "The contrast between the survey's findings of weak homebuying sentiment and overall economic optimism mirrors what we're seeing in the broader economy," says Doug Duncan, senior vice president and chief economist at Fannie Mae. "While economic growth posted the fastest back-to-back pace in four years in the third quarter, residential investment declined for the third consecutive quarter, a first for the current expansion."
Fewer consumers now expect home prices to rise, echoing other surveys that have shown a drop in the number of people who think owning a home is currently a good investment. Home prices are still gaining, but those increases have been shrinking each month: They've fallen below 6 percent annually for the first time in a year, according to the much-watched S&P CoreLogic Case-Shiller home price index.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable