Home purchase sentiment nears all-time high

by Francis Monfort11 Dec 2017
Home purchase sentiment among consumers increased in November to near its record high in September, signaling a gradual upward trend, according to the Home Purchase Sentiment Index (HPSI) released by Fannie Mae.

The HPSI was 87.8 in November, an increase of 2.6 points from the month-ago level. On a year-over-year basis, the HPSI is up 6.6 points. Fannie Mae attributed the increase to gains in four of the six HPSI components.

The index found that 29% of Americans say it is a good time to buy a home, an increase of seven percentage points. There was a four-percentage-point increase in the number of those who say it is a good time to sell a home to 34%.

The HPSI also revealed a six-point increase in the net share of Americans who say that home prices will go up; that number now stands at 46%. Additionally, the share of Americans who say they are not concerned about losing their job rose four percentage points to 74%.

Meanwhile, the net share of Americans who say their household income is significantly higher than it was 12 months ago remained unchanged at 14%. The only component of the HPSI that recorded a decrease was the net share of those who say mortgage rates will go down over the next 12 months, which slipped five percentage points.

“In November, the HPSI rebounded to near its all-time high, returning the index to its gradual upward trend and suggesting fairly stable consumer home-buying attitudes,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “These results are consistent with our expectation that the housing market will continue its modest expansion going forward. Next month’s survey should offer the public a first look at the influence that potential tax reform may have on consumers’ views toward housing and the broader economy.”

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