Consumer confidence in the housing market dropped in June, according to Fannie Mae’s latest National Housing Survey, with the company’s Home Purchase Sentiment Index (HPSI) falling 3.7 points to 69.8. That marks a 2.8-point drop compared to the same time last year.
Five of the six HPSI components declined in June, including concerns about job security, expectations for mortgage rates, household income trends, and both home price and selling sentiments. The only component to improve was whether now is a good time to buy a home — which improved from the prior month, and even more so from a year ago.
Buying Sentiment Ticks Up
The share of consumers who believe it’s a good time to buy rose to 28%, up from 26% in May. At the same time, the share who think it’s a bad time to buy declined to 71%. That brings the net share to -43%, a 5-point improvement from the previous month. Notably, it's a +20 point change from the year before.
Selling Confidence Slips
Despite elevated home prices, consumer sentiment around selling softened. The net share of those who said it’s a good time to sell fell 2 points to 21%, as the portion saying it’s a bad time to sell rose to 39%.
Job Anxiety Surges
One standout development in June’s data was a sharp drop in job confidence. The net share of employed respondents who said they are not concerned about losing their job plunged 13 percentage points to 41% — one of the lowest levels in the survey’s history.
Rate Expectations, Income Outlook Weaken
Only 25% of respondents believe mortgage rates will decline in the next 12 months — a 7-point decrease from May — while 34% think they will rise. That results in a net negative sentiment of -9%, the lowest since March.
Similarly, the share of consumers who say their household income is significantly higher than a year ago fell to just 16%, tying the lowest level seen since November 2024.
Most Expect Prices and Rents to Keep Rising
Despite softening optimism overall, 45% of respondents still expect home prices to rise over the next 12 months, with only 22% expecting a decline. On average, consumers foresee home prices increasing 2.1% and rents climbing 5.7% over the next year.
Buying Still Beats Renting
While the share of consumers who say they’d buy if they had to move declined to 64% (from 68% in May), owning remains more appealing than renting, which saw a slight increase to 35%.
Ongoing Housing Fatigue
Fannie Mae’s June data paints a picture of a housing market where affordability challenges, rate pessimism, and broader economic anxiety are keeping consumer sentiment subdued. Any optimism — such as a small uptick in buying sentiment — appears tempered by growing concerns about job stability and income stagnation.
