Homebuyer sentiment declined in June, as concerns about job security and the direction of mortgage rates outweighed slightly improved attitudes about current buying conditions, according to national housing survey results released Monday by Fannie Mae.

The mortgage giant’s Home Purchase Sentiment Index (HPSI) fell 3.7 points to 69.8 in June, mostly erasing May’s gain of 4.3 points. The index gauges consumer attitudes about the housing market, including current buying and selling conditions and year-ahead outlooks for mortgage rates, home prices and job loss concerns. It also tracks changes in household income over the past 12 months.

In a notable shift, 29% of people surveyed in June said they are concerned about losing their job, up 7% from May. Just 16% of respondents reported improved year-over-year household income in June, a 3% decline from May.

The June survey also saw increased pessimism about mortgage rates, with 34% of respondents believing rates will increase over the next year versus 32% who had that sentiment in May. Just 25% of June respondents predicted rates will decrease over the next 12 months, a 4% decline from May’s survey.

Those economic concerns weighed down overall homebuyer sentiment despite improving attitudes about current buying conditions. About 71% of people surveyed said it’s a bad time to buy a house, which is 3% less than May and a 10% year-over-year improvement from June 2024’s dismal 81% mark.

Attitudes about year-ahead home prices were mostly unchanged month over month, with 22% of June respondents predicting price declines versus 21% in May.