Consumers are growing more optimistic about the real estate market for the first time since March and they're expecting home price growth to slow, according to Fannie Mae’s Home Purchase Sentiment Index (HPSI).
The index showed that 32% of consumers in August believed it was a good time to buy a home — that's up from 28% in July. And those who thought home prices would continue to increase over the next year dropped from 46% in July to 40% in August.
"The HPSI remained relatively flat this month, suggesting to us that the continued strength of demand for housing and favorable home-selling conditions may be offsetting broader concerns about the Delta variant and inflation that have negatively impacted other consumer confidence indices," Mark Palim, Fannie Mae vice president and deputy chief economist, said.
If you're interested in taking out a mortgage or refinancing your current home loan while the housing market is strong, visit Credible to find your personalized mortgage rate.
Improved consumer expectations could stem from favorable mortgage rates
Mortgage rates are at historic lows, which has potentially contributed to increased optimism in the housing market, according to the HPSI. The current 30-year fixed-rate mortgage averages 2.88%, according to the latest Primary Mortgage Market Survey from Freddie Mac.
"Most consumers continue to report that it’s a good time to sell a home – but a bad time to buy – and they most frequently cite high home prices and a lack of supply as their primary rationale," Palim said. "However, the ‘good time to buy’ component, while still near a survey low, did tick up for the first time since March, perhaps owing in part to the favorable mortgage rate environment and growing expectations that home price growth will begin to moderate over the next twelve months."
If you want to take advantage of low interest rates, you may want to consider a mortgage refinance. This could help struggling borrowers potentially save hundreds on their monthly mortgage payment. Visit Credible to compare multiple mortgage lenders at once and find the best rates for you.
How to get a low mortgage rate
While mortgage rates are at historic lows, there are several ways homeowners and homebuyers can take advantage. Here’s how to ensure you get the lowest rate:
Refinance your mortgage
Homeowners that bought a home even just last year before the pandemic could benefit significantly from refinancing. They could potentially lower their interest rate and save on their monthly payment. Visit Credible to get prequalified in minutes without affecting your credit score.
Compare multiple lenders
Shopping around for interest rates and comparing multiple lenders could help borrowers save significantly on their home loan. Visit the Credible marketplace to check out multiple mortgage options at one time.
Start improving your credit score
Borrowers with a good financial profile are likely to get better mortgage rates. It's helpful to connect with a financial expert about six months before making a major credit purchase to see where you stand. If you are considering taking out a mortgage or getting a mortgage refinance, contact Credible to speak to a home loan expert and get all of your questions answered.
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