Housing Optimism Continues to Fall: Fannie Mae

The net share of Americans who said home prices would rise fell to 37%, down two points from the previous month.

Those who expected mortgage rates to go down over the next 12 months dropped by one point to -57%, and the number of respondents who said they were not concerned about losing their job fell by a point to 78%.

The final index component — those who said their household income was significantly higher than it was 12 months ago — remained unchanged at 19%.

Duncan said the continuing erosion of buying sentiment occurred despite generally positive views of the economy. "Among those who said it's a good time to buy, 30% — a record high — cited favorable economic conditions as the reason.

"Meanwhile, the share of consumers who think the economy is on the right track continued to grow, reaching a new survey high."

The contrast between weak home buying sentiment and overall economic optimism in the survey's findings, Duncan said, reflects what is happening in the broader economy.

"While economic growth posted the fastest back-to-back pace in four years in the third quarter, residential investment declined for the third consecutive quarter, a first for the current expansion."