With the 30-year fixed-rate mortgage averaging 7.49%, Duncan noted that the share of consumers expressing pessimism about homebuying conditions reached a new survey high in September, with 84% indicating that it’s a bad time to buy a home.
“On the sell side, respondents also listed unfavorable mortgage rates as the top reason why they believe it’s a bad time to sell a home,” he added, pointing out that 37% of Americans now believe it’s a bad time to sell.
“This indicates to us that many homeowners are probably not eager to give up their ‘locked-in’ lower mortgage rates anytime soon, but it also may reflect the worry of some homeowners that sale values might be suppressed slightly if the pool of qualified homebuyers is constrained by elevated mortgage rates.”
Only 17% of respondents expect mortgage rates to go down, and those who anticipate a slowdown in home price growth decreased to 23%, according to Fannie’s report.
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Source: mpamag.com