Consumer sentiment about the U.S. housing market rebounded in July after a June dip ended three months of gains.
Mortgage giant Fannie Mae said its Home Purchase Sentiment Index rose two points to 71.8 in July from June and is up 0.3 points year over year.
Four of the six components that make up the index improved month over month. Respondents were more positive regarding the categories of job loss concern, home price outlook, mortgage rate outlook and change in household income. The selling conditions category was unchanged, while buying conditions declined.
Despite the buying concerns, buyers are enjoying the kind of leverage they haven't had since before the 2020 pandemic, according to analysts and real estate agents.
Record levels of homes for sale in Houston and other areas are putting buyers in control, and they're more discriminating and insisting on move-in-ready homes, agents say.
While buyers are emboldened to negotiate hard on price, that's often not even the sticking point to a sale, South Florida broker Terry Story of Keller Williams Realty Services told Homes.com.
Buyers want credits at closing
In some cases, buyers are asking for seller concessions at closing on air conditioning units and water heaters, even if there are no functional defects present, according to Story. When sellers balk, deals are delayed or canceled outright, she said.
"Buyers are throwing the whole inspection report at sellers and asking for a credit for everything," she said. "The behavior is such that buyers think it's a complete runaway buyer's market and they're 100% in control."
Elevated mortgage rates and rising numbers of for-sale signs will continue leveling home prices in the second half of 2025 even as overall appreciation likely remains positive, said Erika Ludvigsen, national director of residential analytics at Homes.com.
"The West and South may offer more opportunities for buyers, especially in metros where inventories are growing and prices are cooling," she said.
Fannie Mae’s Economic and Strategic Research Group oversees the monthly index, analyzing data and conducting surveys of consumers and mortgage lenders.
