On Thursday (7-7-22) afternoon, Fannie Mae released its Fannie Mae Home Purchasing Sentiment Index® (HPSI) for June. According to the report, the HPSI dropped 3.4 points to a reading of 64.8. This is the second-lowest reading in a decade.
Consumer’s surveyed for the HPSI continue to express negativity in regard to homebuying conditions. With only 20% of the respondents indicating it is a good time to purchase a home, while the percentage of consumers who thought it was a ‘Good time to Sell’ fell from 76% in May to 68% in June.
Month-over-month, four of the HPSI’s six components fell, including the components associated with perceived job stability, and household income. Of note, a survey-high 81% of consumers believe that the economy is going in the “Wrong Track”, and for the first time in approximately 7-years, a majority of respondents said it would be difficult to get a mortgage, potentially the result of higher home prices and mortgage rates. Year-over-year the HPSI is down 14.9 points.
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Consumers Appear Increasingly Frustrated by Housing Market, Larger Economy