The U.S. housing market may be starting to get volatile. Fannie Mae’s latest Home Purchase Sentiment Index report found that consumer confidence in housing took a hit in February. The worry seems to be stemming from some general upheaval at the federal financial level.
“Volatility in consumer housing sentiment continued into February, with the new tax law beginning to impact respondents’ take-home pay and the stock market creating negative headlines due to early-month turbulence,” said Doug Duncan, SVP and Chief Economist at Fannie Mae. “Additionally, consumers’ expectations for higher mortgage rates suggest that consumers expect the Fed to hike rates a few more times in 2018.”