“Housing sentiment increased from November through February, driven largely by consumer belief that mortgage rates would move lower,” he said in the report. “However, recent data showing stickier-than-expected inflation, rising mortgage rates, and continued home price appreciation appear to have given consumers pause regarding the market’s direction.”
While 67% of consumers surveyed said they believe it’s a good time to sell a home – up 10 percentage points since the end of 2023 – only 20% felt it was a good time to buy, an increase of just three points over the same period. This divergence comes amid the steady upward march of mortgage rates.
Read more: When is the best time of year to sell a home?
The share of respondents expecting mortgage rates to decline over the next 12 months fell to just 26% in April. On the other hand, 42% anticipate home prices will continue rising, up from 40% in March.
“We think consumers’ generally improved sense of home-selling conditions bodes well for listings and housing activity, particularly for the segment of the population who may need to move for lifestyle reasons and have already begun adjusting their financial expectations to the current mortgage rate and price environment,” Duncan said.
