Fannie Mae: Consumer housing market sentiment hits 2025 high point

Mortgage rate outlook cautious but optimistic

While 29% of consumers said they expect rates to decrease, 38% expect them to remain unchanged. The share of respondents who think rates will rise fell from 36% in April to 32% in May.

Concerns about job security also eased. Only 22% of employed respondents said they were worried about losing their job — down from 25% in April and 32% in March. The net share of consumers not concerned about unemployment rose to 54%.

But views on household income remained mixed. Most respondents (70%) said their income is unchanged from a year ago, while 10% said it had declined significantly. The net share reporting higher income dropped 3 percentage points to 9%.

Although not part of the HPSI, the broader economic outlook also improved slightly. Sixty-four percent of respondents said the economy was on the wrong track in May, compared to 67% in April and 74% in May 2024.

Most buyers remain wary

Despite the overall improvement, most consumers still don’t believe it’s a good time to buy. Only 26% of those surveyed in May said it was a good time to purchase a home — up from 23% in April and 14% a year earlier, which was a survey low.

Meanwhile, the share who said it was a bad time to buy fell to 74%, down 3 percentage points from April.

Sentiment about selling also improved. Sixty-one percent of respondents said May was a good time to sell, up from 58% in April. The percentage who said it was a bad time to sell dropped to 38%.

Expectations about home prices also shifted. Forty-five percent of respondents said they expect prices to rise in the next year while 34% said they would stay the same. The net share of consumers anticipating higher prices rose to 24%, a 3-point gain.