Consumer confidence in housing rises
Fannie Mae’s monthly housing sentiment index was released on Monday and showed that consumer confidence in the housing market improved from November to December. The share of respondents saying now is a good time to buy a home was up 16% compared to October and November. Also mentioned in the report was that more consumers now believe that home prices should fall in the next 12 months, and more also stated they believe mortgage rates will come down this year.
How did the mortgage market perform on Monday?
The national average for a 30-year, fixed rate mortgage ended trading down 0.06% at 6.14% on Monday. The bond market was slightly lower, and that seemed to spur the mortgage market into heading downward. Additional economic data will come out later in the week that could move the market, but downward pressure to start the year is likely a welcome sign for potential home buyers.
Where are home rental prices finally falling?
Realtor.com released a list of nine metro areas that have seen the average rental price go down in the past year. The west coast was well-represented with Riverside, CA, Las Vegas, NV, and Sacramento, CA coming in first, second and third place on the list. Popular Sun Belt cities like Atlanta, Tampa, and Jacksonville also appeared.
Analysts observed that renters are starting to move back to larger cities with rent in places like Chicago, Boston, and New York City still trending upwards.
According to analysts, rental prices are still expected to rise in 2023, but the days of the massive hikes appear to be over. Slower growth with dips in certain locations is expected to be the norm for the new year.
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