Consumer sentiment toward the housing market improved in March compared with February, as the net share of Americans who said it is a good time to buy a home increased 10 percentage points to 32%, as per Fannie Mae’s Home Purchase Sentiment Index.
The net share of those who said it is a good time to sell rose three percentage points to 39%, matching the survey high last seen in June 2017.
Overall, the index rose 2.5 points in March to a score of 88.3, reversing the previous month’s decrease. The index is up 3.8 points compared with the same time last year.
However, other components of the index were flat or down compared with February. The net share of respondents who said home prices will go up in the next 12 months decreased three percentage points – while the share who said their household income was significantly higher compared with a year earlier remained flat at 17%.
The share who said mortgage rates will go down over the next 12 months increased five percentage points.
Americans expressed no change in their sense of job security, with the net share who say they are not concerned about losing their job staying flat month over month.
“The HPSI’s recent run of volatility continued in March, as it recovered last month’s loss and remained within the five-point range of the past twelve months,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a statement. “The primary driver of this month’s increase was the sizable rise in the net share of consumers who think it’s a good time to buy a home, which returned the indicator to its year-ago level. On the whole, a slight majority of consumers continue to express optimism regarding the overall direction of the economy.”