Fannie Mae’s Home Purchase Sentiment Index reached a new all-time survey high, which indicated that consumers are confident about the housing market. This recent Housing Wire article by Kelsey Ramírez, shares the details of Fannie Mae’s recent report.
The HPSI increased 3.3 points in July to 86.5, up from last month’s 83.2.
The HPSI distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey into a single number. The number reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making.
All six of the HPSI components increased in July. The net share of consumers who expect home prices to go up over the next year increased the most at eight percentage points after a decrease in June. The net share of consumers who expect mortgage rates to go down over the next year increased five percentage points. The household income component also rose three percentage points after a decrease in June.
While mortgage interest rates had been inching up over the past few weeks, a disappointing advance estimate on the second-quarter GDP sent mortgage rates right back down last week.
The share of consumers who said they would buy a home if they moved increased to 67%, whereas the share who said they would rent decreased to 26%, equaling the all-time low for the National Housing Survey.
[Read the full article: Fannie Mae: Consumers more confident about housing than ever]
