On April 7, 2022 Fannie Mae posted the following Consumer Outlook report.
"Consumer Pessimism Regarding Direction of Mortgage Rates Hits New Survey High"
IMPORTANT SIDE NOTE: As the coronavirus (COVID-19) unfolded, the government imposed a foreclosure moratorium, a mortgage forbearance program, and mortgage servicing guideline which was the reason for the LOW Foreclosure Rates recorded in 2020 and 2021. With that foreclosure moratorium now lifted, the 2022-2023 reports will start to show the true US Housing Market situation.
Highlights contained in the report were:
* In March 2022, a survey-high 69% of respondents indicated that they expect mortgage rates to continue their upward ascent>.
* The "Good Time to Buy" component set a new survey low, with 73% of respondents reporting that it's a bad time to buy a home.
* Consumers are expecting their financial situations to worsen over the next year.
* Fannie Mae's Home Purchase Sentiment Index (HPSI) down 8.5 points compared to the same time last year.
* Home Price Expectations: Those responding feel home prices will continue to increase over the next 12 months increased from 46% to 48%.
* Mortgage Rate Expectations: the percentage of those who expect mortgage rates to go up increased from 67% to 69%.