Rising housing prices are scaring potential homebuyers as less than a fourth of Americans think now is a good time to buy. But playing the waiting game may not play out in buyers' favor as experts expect prices to continue to rise and mortgage rates to go up after dipping in the previous months.
After a strong summer in the housing market, something is turning potential buyers on their heels. Just 21% of Americans say now is a good time to buy a home, a drop from 28% in September, according to a monthly sentiment survey by Fannie Mae.
There was also a decline in the share of people who think now is a good time to sell a home, from 44% to 41%.
The problem is price. Affordability has weakened considerably since the surge in summer buying. Home price gains had been cooling off at the start of this year, but then mortgage rates began falling, buyers rushed in and prices heated up. Now mortgage rates are rising again, adding to the problem.
