Economic news sounds a bit contradictory lately— especially when more and more Americans feel the economy is on the “wrong track,” but they’re not worried about losing their jobs.
Quartz Smart Investing with Cameron Dawson, Part 2
According to the latest home purchase sentiment index from the Federal National Mortgage Association—known as Fannie Mae—78% of respondents believe the economy is on the “wrong track” and overwhelmingly blame inflation. The negative sentiment ticked up 7 percentage points from last month.
Despite the gloom, 78% of Americans are confident they won’t lose their jobs over the next 12 months, up from 75% the previous month.
“[C]onsumers are fed up with the high prices of many goods and services,” said Fannie Mae’s chief economist Doug Duncan.
“Although the labor market is strong and wages have risen in the past year, consumers may believe that their purchasing power has not kept up with prices, as 69% of consumers say their incomes are ‘about the same’ compared to the previous year,” he added.
But it should also be noted that the survey found that the net share of those who say their household income is significantly higher than it was 12 months ago increased 5 percentage points month over month.
Home buyers and owners don’t align
The Federal Reserve’s higher-for-longer stance isn’t helping homeowners and buyers, as survey respondents aren’t convinced they’ll see their mortgage rates lower anytime over the next 12 months. Homebuyers are also saying that high home prices—despite median prices dropping in September—are driving their pessimism, with 85% of