Skip to main content
Surveys

National Housing Survey

Consumers Increasingly Adamant That It’s a Good Time to Sell, Bad Time to Buy a Home

High Home Prices, Limited Supply Continue to Drive the Diverging Sentiment

July 7, 2021

The Fannie Mae Home Purchase Sentiment Index® (HPSI) was largely unchanged in June, decreasing by 0.3 points to 79.7, despite even greater volatility among its underlying components. The “Good Time to Buy” and “Good Time to Sell” components once again produced the most notable results. On the buy-side, 64 percent of respondents said it’s a bad time to buy a home, up from 56 percent last month; while on the sell-side, 77 percent of respondents said it’s a good time to sell, up from 67 percent last month. The components more closely associated with household finances were largely flat month over month but remain elevated compared to this time last year, particularly the component regarding job security. Year over year, the overall index is up 3.2 points.

“The HPSI remained flat this month, although its underlying buy and sell components continued to diverge, setting record positive and negative readings, respectively,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions. While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowners than other consumer segments who have already established homeownership.”

Duncan continued: “Despite the pessimism in homebuying conditions, we expect demand for housing to persist at an elevated level through the rest of the year. Mortgage rates remain not too far from their historical lows, and consumers are expressing even greater confidence about their household income and job situation compared to this time last year, when the pandemic had shut down wide swaths of the economy.”

On the right rail of this webpage, you will find a news release with highlights from the HPSI and National Housing Survey 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 National Housing Survey methodology, the questionnaire used for the survey, and a comparative assessment of Fannie Mae’s National Housing Survey and other consumer surveys.

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

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) group or survey respondents included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR group represent the views of that group or survey respondents as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

The Exchange Logo

The Exchange™ data and API platform
Use the APIs on The Exchange to instantly access our Economic & Strategic Research (ESR) data, and other trusted U.S. housing, finance, and economic data – all in one place. Whatever your business, you can use The Exchange to explore key housing topics, understand trends, identify opportunities, and make data-driven decisions.

Watch our video to find out how FreightWaves® uses The Home Purchase Sentiment Index® (HPSI) data on The Exchange to predict freight shipping volumes, provide price transparency, and help their customers make informed decisions about how to deploy their resources. Visit The Exchange to get creative and discover how our data can help inform your decisions.