Consumer Confidence in Homebuying Hits All-Time Low

Sentiment in the US housing market declined in September as high mortgage rates and expectations of rising home prices deterred buyers. The Fannie Mae Home Purchase Sentiment Index dropped 2.4 points to 64.5, with only 16% of consumers considering it a good time to buy a home. High mortgage rates surpassed high home prices as the top reason for the negative sentiment. Sellers also cited high mortgage rates as a deterrent to selling, exacerbating the shortage of housing inventory. Affordability conditions are at their worst, and the downturn in home sales is expected to persist even if the US avoids a recession.