American’s Sentiment Toward Housing Turning Positive!
Fannie Mae’s Home Purchase Sentiment Index (HPSI) rose 4.5 points in May 67.5—increasing slightly from nearing an all-time survey low in April.
Four of the six HPSI components increased month-over-month, with consumers reporting a more optimistic view of homebuying and home-selling conditions. Also, fewer consumers reported expectations that mortgage rates will go up over the next year. Annually, the HPSI is down 24.5 points.
Doug Duncan, SVP and Chief Economist at Fannie Mae, said despite the declines in March and April, the housing market remains “substantially elevated” compared to historical data.
“Low mortgage rates have helped cushion some of the impact of the pandemic on consumer sentiment regarding whether it’s a good time to buy a home, which picked back up this month to late-2018 levels,” Duncan said. “Although weakened income perceptions and continuing job loss concerns, particularly among renters, are likely weighing on many would-be buyers, purchase mortgage applications have returned to mid-March levels when pandemic response measures began ramping up.” Daily Dose