Consumer Confidence in the Housing Market Dropped in December 2017

At the end of 2017, consumer confidence in the housing market dropped, as housing affordability remains a pressing concern, and as the new tax law begins to take effect.

According to Fannie Mae's Home Purchase Sentiment Index (HPSI), consumer confidence in the housing market overall fell two points in December to 85.8, whereas in November 2017, consumer confidence had increased. HousingWire reports that while consumers are less confident that it is currently a good time to buy a home (24 percent), the data show that confidence in selling a home remained unchanged, (34 percent).

“Consumers remained cautious in their housing outlook at the end of 2017, as tax reform discussions continued,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “In December, mirroring the other major consumer sentiment benchmarks, the HPSI reflected this caution and declined slightly.”

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