Confidence in purchase transaction growth improved on both a quarterly and annual basis
Confidence for volume growth over the next year went up 0.4 percent from the last quarter of 2016, according to the Real Estate Sentiment Index from First American Financial Corp.
HousingWire reports that confidence in purchase transaction growth increased 6.5 percent from last quarter and 3.7 percent from last year. The results come from a survey of independent title agents and other real estate professionals.
First American chief economist Mark Fleming said that the spring buying season looks promising, even with low inventory, expensive home prices, and rising interest rates.
“Despite some regional disparities, title agents and real estate professionals do not expect increasing mortgage rates to have a significant impact on the housing market this spring,” Fleming said. “Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5 percent bode well for 2017 real estate. Hopefully, there will be enough supply.”
The Index also found that confidence in refinance transaction volume growth decreased 5.7 percent from last quarter and 3.7 percent from last year.