Consumer confidence in the housing market decreased in June, falling 1.6 points compared with May to a score of 90.7 on Fannie Mae’s Home Purchase Sentiment Index (HPSI).
However, the HPSI was up 2.4 percentage points compared with June 2017.
In the monthly survey, the net share of Americans who say it is a good time to buy a home remained unchanged compared with May at 28%.
The net share of who say it is a good time to sell a home rose one percentage point to 47% – a new survey high for the third straight month.
The net share of Americans who say home prices will go up in the next 12 months fell three percentage points compared with May to 46%.
The net share of those who say mortgage rates will go down over the next 12 months decreased four percentage points to -53%.
The net share of Americans who say they are not concerned about losing their job fell two percentage points to 76%.
The net share of those who say their household income is significantly higher than it was 12 months ago fell two percentage points to 19%.
“After several years of steadily climbing, HPSI’s slowing upward trend suggests the index may be reaching a plateau,” says Doug Duncan, senior vice president and chief economist at Fannie Mae, in a statement. “Tight supply and lackluster income growth continue to weigh on housing activity, and consumer expectations for home price growth over the next 12 months have moderated. However, consumers expressed increased optimism about the direction of the economy and their personal financial situations over the next 12 months, with both measures matching previous survey highs this month.”