HPSI in Holding Pattern as Election Results Resolve and Pandemic Evolves
The Fannie Mae Home Purchase Sentiment Index® (HPSI) ticked up 0.7 points in October to 81.7, rising for the third consecutive month. Three of the six HPSI components increased month over month, with consumers reporting a more optimistic view of both homebuying and home-selling conditions, in addition to expecting mortgage rate declines. However, consumers also reported greater pessimism regarding their personal finances and employment outlook. Year over year, the HPSI is down 7.1 points.
“In October, home purchase sentiment and personal finance sentiment diverged to produce only a slight increase in the HPSI,” said Doug Duncan, Senior Vice President and Chief Economist. “Though there were improvements in the HPSI’s buying, selling, and mortgage interest rate outlook components, we saw similar declines in the job security and household income change components. To date, the HPSI has recovered over 60 percent of its COVID-19 pandemic loss, reflecting the bright spot that the mortgage market has been in the economy. However, the continuing evolution of the pandemic and the 2020 election outcomes may have longer lasting and unexpected impacts on consumer sentiment, as we saw following the 2016 elections, and we expect both factors will shape the housing market over the coming months.”
National Housing Survey Monthly Indicators Archive
Click here for an archived list of Fannie Mae's National Housing Survey Monthly Indicators.