Housing Sentiment Hits New Survey High on Improving Job, Mortgage Rate Expectations
Supply, Affordability Constraints Remain Obstacles to Growth
WASHINGTON, DC – The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) increased 2.2 points in July to 93.7, a new survey high. Five of the six HPSI components increased month over month, with an 8-percentage point increase in the net “Confidence About Not Losing Job” component driving the index higher. On a year-over-year basis, the forward-looking job confidence and “Mortgage Rates Will Go Down” components are up 16 and 24 percentage points, respectively.
“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges,” said Doug Duncan, Senior Vice President and Chief Economist. “Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category. However, recent financial market events following when the survey data were collected could weigh on consumer views looking ahead.”
On this webpage you will find a news release with highlights from the HPSI and NHS results, the latest Data Release highlighting the consumer attitudinal indicators, month-over-month key indicator data, an overview and white paper about the HPSI, technical notes providing in-depth information about the NHS methodology, the questionnaire used for the survey, and a comparative assessment of Fannie Mae’s National Housing Survey and other consumer surveys.
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