Confidence In U.S. Housing Market Declines, Data Shows

New data shows that Americans’ confidence in the housing market is declining.

Rasmussen Reports released the data, which shows that Americans don’t expect their homes to increase in value in the short term.

- Advertisement -

“In a potential signal of declining economic optimism, homeowners are becoming less confident in the resale value of their homes,” Rasmussen said.

The poll found 22% say they expect their home price to actually decrease.

“The latest Rasmussen Reports national telephone and online survey finds that 40% of American homeowners still think the value of their home is likely to go up over the next year,” the group said. “That’s down from 45% in May. Twenty-two percent (22%) now say the value of their home is more likely to go down – up from 17% in May – while 31% expect their home’s value to remain about the same.”

The poll comes as higher inflation rates have pushed the Federal Reserve to raise interest rates, leading to a spike in mortgage costs and therefore a decline in mortgage demand.

In fact, mortgage demand just hit a 25-year low.

“Mortgage applications are now into their fourth month of declines, dropping to the lowest level since 1997, as the 30-year fixed mortgage rate hit 6.94 percent – the highest level since 2002,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The speed and level to which rates have climbed this year have greatly reduced refinance activity and exacerbated existing affordability challenges in the purchase market. Residential housing activity ranging from housing starts to home sales have been on downward trends coinciding with the rise in rates. The current 30-year fixed rate is now well over three percentage points higher than a year ago, and both purchase and refinance applications were down 38 percent and 86 percent over the year, respectively.”


- Advertisement -

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Get The Full Story From Me

Conservative Media is under attack from Big Tech. Please join my 100% FREE NEWSLETTER.