Consumer confidence in the housing market has hit a new low | Story | So Good News

Slowing home prices and rising interest rates have left many Americans feeling pessimistic about the US housing market.

In Fannie Mae’s monthly survey in October, only 16 percent of consumers said it was a good time to buy a home. That’s the lowest percentage since the survey began in 2011. The share of respondents who thought now was a good time to buy a home also fell from 59 percent to 51 percent last month.

More than a third of buyers (37 percent) said they expect house prices to fall in the next 12 months. This is up slightly from 35 percent in September.

Rising home prices appear to be slowing, although interest rates have risen sharply this summer, jumping from 3 percent at the beginning of 2022, and approaching 8 percent at the end of September.

“As the affordability crisis dampens homebuyer demand, and homeowners are reluctant to sell at prices that may decrease, we expect home sales to slow significantly in the coming months, consistent with our forecast,” wrote Doug Duncan, chief economist at Fannie Mae, in a release.