Though still comparatively strong, consumer confidence in the housing market dropped again in October in response to economic uncertainty and lack of affordability, according to Fannie Mae.
Fannie's Home Purchase Sentiment Index declined for the second straight month after hitting an
Five out of the six sentiment components fell month-over-month, with the 7-percentage-point drop in net share of consumers believing it's a good time to buy representing the largest decrease. Only 21% consider housing a buyer's market even though job confidence rose, increasing three points to 72%.
"The 'good time to buy' component has declined notably, despite
While the HPSI ticked down twice in the last two months, it still sits at a relative high point. This marks the best October the index recorded since its release in 2011.
"Consumer home purchase sentiment remains robust, with the HPSI still near its survey high despite dipping for a second consecutive month," Duncan said.