The Fannie Mae Home Purchase Sentiment Index(HPSI) increased in January to 77.7 – a 3.7 point improvement from December – with consumers reporting a significantly more positive view of home-selling conditions.
“Interestingly, lower-income and renter groups were more optimistic this past month across nearly all of the sentiment index’s components,” says Doug Duncan, Fannie Mae’s senior vice president and chief economist. “We will pay close attention to see if this newfound optimism develops into a trend, which could indicate either that some demographics who have been more negatively impacted by the pandemic may be starting to feel the economic recovery or that this is a response to the additional stimulus enacted in December.”
There was a large increase in the share of consumers reporting that it is a good time to sell a home: favorable mortgage rates, high home prices and low housing inventory drove that sentiment. as their primary rationale. The percentage of respondents who say it’s a bad time to sell decreased from 42% to 33%.
The share of survey participants who say it is a good time to buy a home remained unchanged at 52%, while the percentage who say it is a bad time to buy decreased from 39% to 37%.
The percentage of respondents who say home prices will go up in the next 12 months remained the same at 41%, while the percentage who say home prices will go down increased from 16% to 17%. The share who think home prices will stay the same remained unchanged at 34%.
Photo: Doug Duncan
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