The rebound in perceptions of home buying conditions has been driven primarily by lower house prices, but also by lower mortgage rates.

Weak assessments of general economic conditions obviously have been holding back prospective buyers who view house prices and interest rates as favorable.

In March, none of the consumers who rated home buying conditions as good cited good times as a reason, while a significant number of those saying it was a bad time to buy a house listed bad times ahead as a factor.

History shows, however, that spending by consumers often picks up well before the job market improves and consumer confidence recovers. Home sales ordinarily start up well before both employment and confidence rise, generally because low mortgage rates and enhanced affordability encourage some pent-up demand to come onto the market. – Courtesy of NAHB