A Fannie Mae monthly survey revealed that homebuyer sentiment in January 2022 dropped to its lowest level since May 2020 during the first peak wave of the novel coronavirus, according to CNBC. While just one quarter of respondents suggested that now is a good time to buy a home, 69% said that the current housing market is ideal for sellers.
As home prices and mortgage rates steadily increase, buyers are feeling increasingly pessimistic about housing availability, affordability, and new home construction in the wake of a lingering supply chain storm. As rates rise, bidding wars are becoming more common and more heated, pushing home purchases further out of reach for first-time buyers.
Younger consumers are feeling most pessimistic about the housing market now. They expect both rates and home prices to rise further. Younger consumers are usually more optimistic about their own financial futures, but in January’s survey, that optimism waned.
“All of this points back to the current lack of affordable housing stock, as younger generations appear to be feeling it particularly acutely and, absent an uptick in supply, may have their homeownership aspirations delayed,” said Doug Duncan, chief economist at Fannie Mae.
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