The Home purchase sentiment index released by Fannie Mae dipped 0.4 points in August to 71.4, signaling growing uncertainty among prospective buyers and sellers amid economic murkiness. Local agents in El Monte and Baldwin Park say consumers are weighing price forecasts and job security before deciding. While 28 percent now view this as a good time to buy—up from 23 percent—the share of sellers fell to 58 percent, down 2 points from July and 7 points year-over-year.
Home purchase sentiment drivers revealed
August’s decline stemmed largely from a weaker price outlook. The net percentage of respondents who believe home prices will rise plunged 10 points month-over-month. At the same time, the share of employed consumers concerned about losing their job in the next 12 months rose to 27 percent, a 3-point uptick from July and a 6-point increase from August 2024. In Rosemead and Arcadia, lenders report cautious locking of mortgage rates despite recent improvements. Buyers in South El Monte and Irwindale are seeking longer rate guarantees, while some sellers pre-inspecting homes to reassure prospects.
Local housing outlook reflects sentiment
In Temple City and surrounding communities, pending sales volumes have shown mild gains as buyers act before any potential rate hike. Yet listings dropped in Baldwin Park, with some homeowners choosing to delay putting properties on the market. REALTORS® note that supply remains tight for entry-level homes, and the dip in seller confidence could further constrain inventory. Agents advise buyers to get pre-approved and remain vigilant on price shifts. Sellers should consider market-based price adjustments and flexible closing terms to attract today’s cautious buyer.
Outlook for future home purchases
Despite mixed signals, 28 percent of consumers believe now is a good time to buy. That optimism may counterbalance the 10-point drop in price expectations. As the economy’s path becomes clearer, sentiment could swing again. REALTORS® in Rosemead urge buyers to watch local market reports and work with experienced agents. Sellers in El Monte are exploring pre-listing home inspections to offset concerns. For more information on the Home Purchase Sentiment Index, visit Fannie Mae’s research page at https://www.fanniemae.com/research-and-insights. To compare regional trends, see the California Association of REALTORS® site at https://www.car.org.
