Housing sentiment surges

Mar 2012
56,305
37,878
New Hampshire
#1
Lower mortgage rates are likely behind a surge in housing sentiment, which could help rev up what started as a sluggish spring season.

A monthly survey from Fannie Mae showed that, in March, positive sentiment jumped to the highest level since June, which was just below the record high.

More consumers think now is a good time to buy and sell a home, and more expect interest rates to fall in the next year. The net share of those who say it is a good time to buy increased 7 percentage points to 22%, although this is 10 points lower than a year ago. The share of those who say now is a good time to sell a home increased 13 percentage points to 43%, up 4 points from a year ago.

Continuing a five-month trend, the share of consumers who believe mortgage rates will go down increased 7 percentage points, as rates dropped sharply in March.

Home sellers are suddenly much more optimistic — and you can thank lower mortgage rates
 
Jan 2016
54,775
51,308
Colorado
#2
Home prices have been falling all along the Front Range in Colorado for most of the past year now. Basically, we had a mini-bubble in home prices here in Colorado, and prices got beyond the ability of buyers to pay, first-time buyers in particular. Prices were rising at a much faster rate than incomes, and that just couldn't go on forever:

Home prices fall in Boulder, Denver, Douglas counties. Blip? Or trend?

So this is good for buyers, but not so good for home-owners, who are (of course) seeing a decline in their wealth or net worth, as a consequence.

This is NOTHING on the scale of the massive housing bubble we had in the 2000's.....but yes, we DID have a mini-housing bubble in some parts of the country in the past few years.....
 

HayJenn

Moderator
Jul 2014
67,578
56,656
CA
#5
Lower mortgage rates are likely behind a surge in housing sentiment, which could help rev up what started as a sluggish spring season.

A monthly survey from Fannie Mae showed that, in March, positive sentiment jumped to the highest level since June, which was just below the record high.

More consumers think now is a good time to buy and sell a home, and more expect interest rates to fall in the next year. The net share of those who say it is a good time to buy increased 7 percentage points to 22%, although this is 10 points lower than a year ago. The share of those who say now is a good time to sell a home increased 13 percentage points to 43%, up 4 points from a year ago.

Continuing a five-month trend, the share of consumers who believe mortgage rates will go down increased 7 percentage points, as rates dropped sharply in March.

Home sellers are suddenly much more optimistic — and you can thank lower mortgage rates
Even though my hubby works in the housing industry, I think this is good news. Of course, it depends on what city you are talking about :)
 
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