Americans’ confidence in the housing market reached the highest level on record in April, according to the monthly sentiment survey from Fannie Mae.
The index soared despite rising home prices, increasing mortgage rates, and a tight supply of homes for sale on the market.
Overall, the Fannie Mae Home Purchase Sentiment Index (HPSI) grew 3.4 percent to 91.7 in April, the highest level since Fannie Mae began tracking the statistic in 2011. The survey’s lowest recorded results were reported at 59.3 points during the Obama administration in July and August of 2011.
“The latest HPSI reading edged up to a new survey high, showing that consumer attitudes remain resilient going into the spring/summer home buying season,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “High home prices and good economic conditions helped push the share of Americans who think it’s a good time to sell to a fresh record high.”
Only one of the six components of the survey declined in April. The net share of survey takers who said it was a good time to buy a home dropped three percentage points compared to March.
Meanwhile, the net share of respondents who thought that home prices will rise in the next 12 months increased 7 percent, and the net share of those who thought mortgage rates would decline over the next year rose 4 percent.
In addition, the number of consumers who think their incomes will rise over the next year also increased, while the number of those who think they will lose their jobs declined.
In March, home prices recorded the largest increase in a single month since May 2014, according to finance and property analyst CoreLogic.
The good news on the housing market has been accompanied by a number of positive indicators across the economy since President Donald Trump took office last year. The unemployment rate dropped to 3.9 percent in April, the lowest since 2000. U.S. consumer confidence climbed to a 14-year high in March.
Trump spearheaded the passage of a tax-cut bill last year that has resulted in lower tax rates for most Americans and all corporations. The president’s administration is also cutting regulations at an unprecedented rate.
Recommended Video: President Trump’s Weekly Address on April 27, 2018