According to the latest Fannie Mae Home Purchase Sentiment Index (HPSI) the steep decline in the March survey has been followed by an even deeper drop in April. It is now at the lowest level since November of 2011. The height of the subprime mortgage crisis, when home prices crashed, and foreclosures were widespread. In discussing the situation Doug Duncan, chief economist at Fannie Mae, said “Individuals’ heightened uncertainty about job security, as registered in the survey over the last two months, is likely weighing on prospective homebuyers, who may be more wary of the substantial, long-term financial commitment of a mortgage.” This as mortgage rates hover near record low levels.
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