Aarthi Swaminathan of MarketWatch tells his readers that a “survey-high share of consumers” polled by Fannie Mae are expecting rates to drop over the next year. He writes:
Consumers are feeling more enthusiastic about the U.S. housing market, with a rising share saying they think mortgage rates will fall over the next 12 months, according to a new survey by Fannie Mae.
The monthly Home Purchase Sentiment Index rose 2.9 points in December to 67.2, driven primarily by consumers’ expectation that rates will fall, the government-sponsored enterprise said on Monday. The HPSI uses information from Fannie Mae’s National Housing Survey, which goes back to 2010.
In December, 31% of consumers said they expect rates to fall in the coming year, up from 22% in November. […]
“Homeowners have told us repeatedly of late that high mortgage rates are the top reason why it’s both a bad time to buy and sell a home, and so a more positive mortgage rate outlook may incent some to list their homes for sale, helping increase the supply of existing homes in the new year,” Palim said.
“Of course, that’s likely dependent on the extent to which mortgage rate expectations are met with actual mortgage rate declines,” he added.
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