Most real estate and mortgage professionals realize that the housing recovery has been extremely good since the low in 2012.

In November the Fannie Mae Home Purchase Sentiment Index indicated that consumers aren’t as optimistic about housing prospects for the future.

Fannie Mae concludes that the decrease in the sentiment index was mainly due to two things; Expected decrease in supply and  affordability.

With current interest rates near an all-time low affordability is still high, but higher interest rates could derail consumer sentiment.