More people say it's a good time to buy a home.
Market Perspective: Homebuyer optimism ticks up, but remains near historic lows
Fannie Mae Home Purchase Sentiment Index (HSPI)[1] Up 3.7 points to 61 in December
More consumers believe it's a good time to buy, home prices will go down and mortgage rates will go down this year.[1]
Buyers gain negotiating power as home seller concessions reach record high.
42% of sellers gave concessions to homebuyers in Q4.[2]
A concession is something the seller provides to reduce the buyers' total cost of purchasing the home.
Sellers are also settling for less than asking price.[2]
22% of Q4 sales* included a concession and sold below asing. *Sales reported by Redfin agents.
Home Sales by the Numbers – November 2022
Existing-Home Sales[3] 4.09 million. New-Home Sales[4] 640,000 new homes sold. Pending Home Sales[5]: PHSI 73.9.
 
“There are approximately two months of lag time between mortgage rates and home sales. With mortgage rates falling throughout December, home-buying activity should inevitably rebound in the coming months and help economic growth.”
— NAR Chief Economist Lawrence Yun5
  
Mortgage rates declined for the week ending January 12, 2023.[6] The MBA predicts the 30-year fixed rate will fall to the low 5% range by year-end.[7]
 
Contact me to discuss how I can help you navigate today’s changing market.
  
 
Sources:
[1] Fannie Mae, Home Purchase Sentiment Index, December 2022.
[2] Redfin, “A Record Share of Home Sellers Are Giving Concessions to Buyers,” January 5, 2023.
[3] National Association of Realtors® (NAR), Existing-Home Sales, November 2022.
[4] U.S. Census Bureau, HUD, Monthly New Residential Sales, November 2022.
[5] NAR, Pending Home Sales, November 2022.
[6] Freddie Mac, Primary Mortgage Market Survey®, week ending January 12, 2023.
[7] Mortgage Bankers Association (MBA), Mortgage Finance Forecast, December 19, 2022.

  
 

Share this:

Facebook  Twitter  LinkedIn
%%MR_LoanOfficer%% Photo Jim Sample
NMLS #45678
Sample Mortgage X
1335 Strassner
Saint Louis, MO 63144
314-987-6543
EMAIL ME
Visit my website

Facebook Twitter LinkedIn YouTube channel Instagram Zillow Yelp
%%MR_LoanOfficerBranchName%% Logo
Economic Observer
This email was sent by:
Jim Sample, NMLS #45678
Sample Mortgage X Company NMLS #1234
1335 Strassner Saint Louis, MO 63144

If you would no longer like to receive emails from Sample Mortgage X, you can unsubscribe by clicking here: Unsubscribe
Privacy Statement

FDIC LogoEqual Housing Lender