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US HOMEBUYER CONFIDENCE UP IN DECEMBER

NEWS Desk Global



U.S. homebuyer confidence improved in December, with more homeowners anticipating that mortgage rates would fall further this year, but it could take sometime for housing supply to recover as many remain hesitant to sell their homes. Mortgage finance agency Fannie Mae said on Monday its Home Purchase Sentiment Index rose 2.9 points to 67.2 in December. It was up 6.2 points year-over-year.

"Notably, homeowners and higher-income groups reported greater rate optimism than renters; in fact, for the first time in our National Housing Survey's history, more homeowners, on net, believe mortgage rates will go down than go up," said Mark Palim, deputy chief economist at Fannie Mae.The rate on the popular 30-year fixed-rate mortgage has plunged from a 23-year high of 7.79% in late October, tracking the decline in U.S. Treasury yields. It averaged 6.62% last week, according to data from mortgage finance agency Freddie Mac. Higher mortgage rates have discouraged homeowners locked into lower rates from selling their homes, shortening inventory and pushing existing home sales down precipitously since 2022.

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