Tag Archives: HPSI

Month-over-month, contract signings intensified in the Northeast but diminished in multiple other U.S. regions. First American Deputy Chief Economist Odeta Kushi commented, “While there remains quite a bit of demand for homes on the sidelines, you can't buy what's not for sale, even if you can afford it.”

Consumers nationwide are citing elevated mortgage rates rather than home prices as their primary challenge in reaching affordability, as rates above 7% continue to dampen the overall housing market sentiment, according to Fannie Mae's latest Home Purchase Sentiment Index.

Despite those surveyed reporting job stability and personal financial improvements, Fannie Mae’s Home Purchase Sentiment Index still shows 82% of consumers reporting that it’s a “bad time to buy.”

Consumer confidence in the housing market may have plateaued, according to Fannie Mae's Home Purchase Sentiment Index (HPSI), which remained mostly flat in June, as shrinking supply and affordability conditions continue to pose challenges.

According to a newly released survey by Fannie Mae, affordability constraints have consumers increasingly convinced that it is a seller’s market, while high prices leave buyers with a bleak outlook.

“This month’s increase in the HPSI was the largest in over two years, primarily driven by consumers’ more optimistic mortgage rate expectations,” said Doug Duncan, Fannie Mae’s SVP and Chief Economist.

Fannie Mae’s Home Purchase Sentiment Index posted numbers in March that were just above lows hit late last year.

With both home prices and interest rates remaining relatively high, consumer sentiment is being suppressed by these purchase conditions.

Doug Duncan, Fannie Mae’s SVP and Chief Economist, noted that “respondents continue to cite high home prices and unfavorable mortgage rates as the primary reasons for their pessimism.”

A new Fannie Mae report finds consumer confidence declining to the lowest level seen in the report’s 11-year history.