No Thanks to Housing, Home Purchase Sentiment Edges Up
The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased in August for the first time since May, edging up 1.5 points to 88.0. The uptick can be attributed to increases in the job- and income-related HPSI components. The net share of Americans who said they are not concerned about losing their job increased by 15 percentage points in August, more than recovering last month’s 11 percentage point decrease and offsetting decreases in the housing market components. Additionally, the net share of survey respondents who said their household income is significantly higher than it was 12 months ago gained 1 percentage point. However, the other housing components were largely negative, including the net share of survey respondents who said now is a good time to buy a home, which fell 3 percentage points, as well as the net share who said it is a good time to sell a home, which also fell 3 percentage points. Finally, the net share of respondents who said that home prices will go up in the next 12 months decreased 1 percentage point.
“Consumers are attuned to the divergence between the slowing housing market and strong macro economy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers were less optimistic this month about both homebuying and home selling conditions, while perceptions of income growth and confidence about job security are at survey highs. After years of robust home price growth outpacing income growth, consumers face significant housing affordability challenges at the low end of the market.”
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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