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annie Mae's latest survey shows a significant increase in consumer optimism about the real estate market, with a record share expecting mortgage rates to fall. The Home Purchase Sentiment Index rose by 0.4 points in November to 75, marking four consecutive months of upward momentum and a 10.7-point jump over the past year. While consumers are more optimistic than ever since February 2022, only 23% believe it's a good time to buy a home, up from 14% last year.

    A record 45% of consumers expect mortgage rates to drop in the next 12 months, with economists predicting varying outcomes for 2025. Consumers also report feeling more secure about their employment and finances: 78% are not concerned about losing their job, and 16% have seen a significant increase in household income.

    Despite high home prices and mortgage rates, attitudes have improved slightly since last year, with 38% of consumers expecting home prices to rise in the next 12 months compared to 41% a year ago. Housing experts predict slower home price growth in 2025, which could prompt more consumers to enter the market. Agents are also feeling more optimistic about the coming year, with two recent surveys showing increased confidence and expectations for good sales.

    While consumer sentiment has improved significantly over the past year, there's still room for improvement before the housing market reaches its pre-2019 levels.