Although overall consumer confidence rose in March, consumer confidence in home buying slipped almost four percentage points for the month.

According to the Fannie Mae Home Purchase Sentiment Index (HPSI), confidence decreased 3.8 percentage points to 84.5, following a record high in February. The index showed that the share of people who reported that now is a good time to buy a home fell 10 percentage points, while the share reporting that now is a good time to sell increased by 9 percentage points.

The share of Americans who say that mortgage rates will go down over the next twelve months fell 5 percentage points, to a new survey low, and the share of those who think home prices will go up decreased by 1 percentage point this month.

“Home purchase sentiment gave back some of the gains accumulated over the prior two months that sent the index to its survey high in February. Strong home price appreciation has turned into a double-edged sword for the housing market as it boosted the net share of consumers saying it’s a good time to sell to a record high, surpassing the plunging good time to buy indicator for the first time in the history of the survey,” said Doug Duncan, Fannie Mae senior vice president and chief economist.

“In addition, the net share of consumers who expect mortgage rates to rise over the next year exceeded that experienced during the 2013 taper tantrum. However, the housing market could get some tailwinds from a seasonal rise in for-sale inventory, particularly as some sellers seek to lock in profits from recent rapid home price gains. The market could also get a boost from homebuyers who decide to jump into the market before rates rise further.”

The HPSI provides information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey (NHS) into a single number. The HPSI reflects consumers’ current views and expectations of housing market conditions.

 

Manufactured Housing Front and Center?

The Daily Business News, MHProNews and MHLivingNews have covered the case for manufactured housing as a viable solution to hope for the American Dream of home ownership at a reasonable price extensively, including Bloomberg making a statement to the same effect.

The ability to significantly cut down on production time, provide a high quality product to federal standards, all at a lower price point serves as the ideal solution to inventory and housing challenges. The titans of business recognize the opportunity as well, as giants and independents alike are actually “doubling down” on the industry.

For more on manufactured housing being the solution that’s hiding in plain sight, see MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach’s insight into the opportunity linked here. ##

 

(Image credits are as shown above.)

 

Submitted by RC Williams to the Daily Business News for MHProNews