Bev Murray Real Estate

One important factor in a healthy real estate market is consumer confidence in the housing market.

And a new report from financial company Fannie Mae shows consumer confidence in the real estate market has never been higher.

In the report, called the Home Purchase Sentiment Index (HPSI), Fannie Mae gathers several kinds information that indicate a variety of factors that indicate the confidence in the market. Fannie Mae takes all this data and generates a number that represents the current level of consumer confidence. The July HPSI has reached the highest level since the mortgage giant has been keeping this record.

Below are some of the factors that revealed where consumer confidence was at in July:

• A Great Time To Buy - The percentage of Americans who say it is a good time to buy a home increased from the same time last year.
• A Great Time To Sell - The number of owners who say it is a good time to sell a home, has also increased from the same time last year.
• Employment Confidence - The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year.
• Belief Rates Will Drop - The share of Americans who say mortgage rates will go down over the next 12 months increased dramatically (24 percentage points) from the same time last year.

In addition to the positive news from Fannie Mae, another mortgage giant, Freddie Mac reported that the 30-year fixed-rate mortgage rate fell to its lowest level in three years.

Senior Vice President and Chief Economist at Fannie Mae Doug Duncan explained the uptick in the index:

“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges. Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.”

What Does High Consumer Confidence In Housing Mean For Homeowners?

In general consumers are feeling good about the housing market, with less worry about employment and positive outlooks on interest rates, homeowners should seriously consider making a move while conditions remain so favorable.