Source: Fannie Mae / #Housing #Economy
WASHINGTON, DC - The Fannie Mae Home Purchase Sentiment Index (HPSI) increased 2.2 percentage points in April to 86.7, rebounding following March's dip. Five of the six components that comprise the HPSI were up. The net share of Americans who reported that now is a good time to buy a home increased 5 percentage points, while the net share reporting that now is a good time to sell a home decreased 5 percentage points.
Consumers also expressed greater confidence about the stability of their jobs, with the net share of that component jumping 7 percentage points. Additionally, on net, the share of respondents reporting that their household income is significantly higher than it was 12 months ago increased 2 percentage points.
The net share of Americans who say that mortgage rates will go down over the next twelve months rose 3 percentage points. Finally, the net share of those who think home prices will go up increased by 1 percentage point this month.
"The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track."
HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS
Fannie Mae's 2017 Home Purchase Sentiment Index (HPSI) increased in April by 2.2 percentage points to 86.7. The HPSI is up 3.0 percentage points compared with the same time last year.
- The net share of Americans who say it is a good time to buy a home rose 5 percentage points to 35%, reversing some of the decrease seen in March.
- The net percentage of those who say it is a good time to sell decreased by 5 percentage points to 26%, falling from last month's all-time survey high.
- The net share of Americans who say that home prices will go up increased by 1 percentage point in April to 45%.
- The net share of those who say mortgage rates will go down over the next twelve months rose 3 percentage points from last month's survey low to -57%.
- The net share of Americans who say they are not concerned about losing their job rose 7 percentage points to 77%, erasing most of last month's decline.
- The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 2 percentage points to 13% in April.
The Home Purchase Sentiment Index (HPSI) distills information about consumers' home purchase sentiment from Fannie Mae's National Housing Survey (NHS) into a single number. The HPSI 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.