Today’s home buyers are terrified.

At least that is what you would assume from the May 2022 Home Purchase Sentiment readings that are published each month by Fannie Mae.

This sentiment index fell to 68.2 in May 2022 – and is inching nearer its 10-year- and pandemic-low of 67.5 in April 2020.

Surveyed consumers continue to express concerns about rising mortgage rates and falling housing affordability.

The percentage of people who said that now is a “good time to buy” fell to 17% in May – a new survey low – while 79% of respondents reported that it’s a bad time to buy a home – which was a 10-year high.

Sentiment has been deteriorating since February 2021.

In the meantime, U.S. Home Prices Continue to Rocket Higher at a Record-Setting Pace

Up 20.9% year-over-year in April 2022,  annual price gains in U.S. home once again hit another record high.  (Source: CoreLogic).

So Who Do You Believe?

Do you believe what the people taking the survey who are telling you – or your lying eyes?

That my friends is yet to be determined.