{"id":10781,"date":"2017-01-10T17:57:30","date_gmt":"2017-01-10T17:57:30","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=10781"},"modified":"2017-01-10T17:57:37","modified_gmt":"2017-01-10T17:57:37","slug":"rising-rates-dampen-consumers-moods","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/rising-rates-dampen-consumers-moods\/","title":{"rendered":"Rising Rates Dampen Consumers\u2019 Moods"},"content":{"rendered":"

Rising Rates Dampen Consumers\u2019 Moods<\/h2>\n

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Rising Rates Dampen Consumers\u2019 Moods<\/p><\/div>\n

Mortgage rate increases are chipping away at home buyer sentiment, shows the latest reading from Fannie Mae\u2019s Home Purchase Sentiment Index. For the fifth consecutive month, consumer sentiment dropped in December and most of that centered on perceptions over rising borrowing costs.<\/p>\n

The share of consumers expecting mortgage rates to drop over the next 12 months, as well as those who believe their household income is significantly higher today compared to a year ago, dropped four and five percentage points, respectively, according to the index.<\/p>\n

\u201cDespite the post-election bump in general consumer attitudes, a rapid rise in mortgage rate expectations has tamped down home purchase sentiment, at least in the near term,\u201d says Doug Duncan, Fannie Mae\u2019s chief economist.<\/p>\n

That could change, Duncan says. The spike in interest rates reflects, in part, the market\u2019s anticipation of \u201cpro-growth policies from the incoming administration,\u201d Duncan adds. \u201cIf this optimism comes to fruition, it should translate into stronger income growth and increased job security for consumers \u2013 the two HPSI components that could help support housing sentiment this year.\u201d<\/p>\n

Here are some more highlights from the latest reading:<\/p>\n