Consumers were less inclined to buy a home in September, thanks to concerns about interest rates, home prices and the political environment.
The Fannie Mae Home Purchase Sentiment Index fell 2.2 points from the month before to 82.8 in September. This represented the second consecutive decline since the survey set a record high in July.
Of the index's six components, the largest decrease was in the share of consumers who expect mortgage rates to drop in the next year, which went down six percentage points. The next sharpest decline came with the share of consumers who believe now is a good time to buy — this component dropped five percentage points.
The only component to increase, albeit slightly, was the share of consumers whose household income is significantly higher than a year ago.
"The starter-home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment," Fannie Mae chief economist Doug Duncan said in a news release Friday.
"The decline in the HPSI over the past two months from the survey-high in July of 86.5 adds a note of caution to our moderately positive housing outlook."
