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National Housing Survey/Home Purchase Sentiment Index (HPSI)

Housing Sentiment Dips Again, Inches Closer to All-Time Low

October 7, 2022
Consumers Appear Increasingly Sensitive to Affordability Constraints of Higher Mortgage Rates and Elevated Home Prices

The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 1.2 points in September to 60.8, its seventh consecutive monthly decline, amid growing affordability constraints. Surveyed consumers reported expectations that mortgage rates will move higher over the next 12 months, and, for the first time since May 2020, more respondents than not expect home prices to decline. In September, only 19% of consumers indicated that it’s a good time to buy a home – down from 22% the prior month – while 59% indicated that it’s a good time to sell. Year over year, the full index is down 13.7 points.

“The HPSI declined this month to its lowest level since October 2011,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Consumers’ expectation that home prices will decrease matched a survey high, with a higher percentage of consumers believing home prices will decrease rather than increase over the next year – a shift in survey sentiment that had previously only happened in 2011 and at the start of the pandemic in 2020. Moreover, 75% of consumers still think it’s a bad time to buy a home, with most citing high home prices and unfavorable economic and mortgage rate conditions as primary reasons. As long as supply is limited and affordability pressures continue to constrain potential homebuyers via elevated home prices and mortgage rates, we expect home sales will remain sluggish.”

Downloads and Related Links
September 2022 News Release
September 2022 National Housing Survey Data Release  

National Housing Survey Monthly Indicators Archive
Click here for an archived list of Fannie Mae's National Housing Survey Monthly Indicators.