The Home Purchase Sentiment Index (HPSI) reached its highest point since June 2018 last month. Fannie Mae’s March HPSI showed a 5.5 point increase over February; 56% of survey respondents said it’s a good time to buy a home and 66% said it’s a good time to sell.
Interest rates for a 30-year fixed rate mortgage trended upward for a second week according to the Freddie Mac Primary Mortgage Market Survey (PMMS) for the week ending April 11. Freddie analysts still expect a strong summer market, saying, “Despite the recent rise, we expect mortgage rates to remain low…boosting home buyer demand in the next few months.”
February’s Realtors® Confidence Index Survey shows that first-time buyers accounted for 32% of sales – a 3% increase year-over-year. The survey also said that average time on market was 44 days, sellers received an average of 2.2 offers and 23% of home sellers offered incentives such as paying closing costs, warranties and repairs.
Three out of five home shoppers under age 55 are considering properties that need renovation. Commenting on Realtor.com’s Spring Home Buyer Survey, Chief Economist Danielle Hale said, “…various home renovation TV shows [make] some home shoppers comfortable tackling home renovation jobs to find a home that balances their needs with their budget.” DIY television appears to be a big influence: Nearly 60% of home shoppers considering fixer-uppers said home renovation television has made them more optimistic about tackling projects. However, major overhauls presented in 30-minute segments don’t necessarily portray the mess, cost and inconvenience accurately.
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