With the 30-year mortgage interest rate back in the 7% range and home prices still rising to new highs, it’s easy to understand why the typical homebuyer is feeling pessimistic about the prospect of purchasing a home. A new survey released Monday by Fannie Mae revealed that 82% of consumers said they believed July was a “bad time to buy a home,” up from 78% of uneasy homebuyers in June.
Current market conditions are forcing a growing number of buyers to practice patience in a volatile for-sale market, but some housing experts say unfavorable market conditions could persist for the next several months, Realtor.com reports.
Home prices may continue to stay elevated as few homeowners indicated their interest in selling in the survey, [Doug] Duncan added. About 64% of respondents said it was a good time to sell a home, which was unchanged from the previous month.
The “good time to sell” component has “not seen much movement” in recent months, he noted, “an indication that the current low levels of existing homes for sale will likely continue to persist in the near term.”
“While consumers are reporting confidence in the components related to their personal-financial situations, it’s unlikely we’ll see housing sentiment catch up to other broader economic confidence measures,” Duncan added, “until there is meaningful improvement to home purchase affordability.”
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