Shelter Six:  Home Buying and Selling Optimism Explodes

April 15, 2019 by · Leave a Comment 

The weather warms up, spring begins to bloom, and Fannie Mae’s National Housing Survey shoots up a solid 7% on the buying side and 13% on the selling side in March.

After a winter of relative consumer pessimism, Fannie Mae’s Home Purchase Sentiment Index hit a low-point in December and had risen only slightly since.

But thanks to slowing home price appreciation and falling interest rates, 56% of respondents now think it is a good time to buy and 43% think it is a good time to sell.

Inflation continues to trend lower.  Core CPI rose less than expected in March at a pace of only 2% higher than a year ago, which is its lowest level in more than a year.

Low inflation along with weak global growth, trade tensions, and Brexit concerns have all contributed to central banks in both the U.S. and Europe delaying plans to increase short-term rates.

European leaders agreed last week to postpone Brexit until October 31, which removes the immediate economic risk but does not solve the long-term problem.

Rate Update

Mortgage rates have maintained their aggressive drop in March and remain in the low 4’s.

This Week

Retail Sales will be released on Thursday and Housing Starts on Friday.  Mortgage markets will close early on Thursday and all day on Friday in observance of Good Friday.