Fannie Mae’s Home Purchase Sentiment Index® Continues to Trend Higher in November

Fannie Mae on Monday (12-9-24), released its Home Purchase Sentiment Index® (HPSI) for November 2024. According to the report the HPSI increased 0.4 point in November to a reading of 75.0, continuing its sharp upward trend over the past year as consumers appear to be acclimating to the higher mortgage rate and home price environment. Year-over-year (Nov. 23 – Nov. 24) the HPSI is up 10.7 points.

The November HPSI set a new record-high share of consumers indicated that they expect mortgage rates to decline over the next 12 months, while fewer respondents said they expect home prices to rise. While only 23% believe it’s a “good time to buy a home,” on net that component continued its upward trend, and is now notably higher than last November’s share of 14%. The share of respondents saying it’s a “good time to sell” remained flat month over month but is also up from last year.

Fannie Mae’s Senior Vice President and Chief Economist Dr. Mark Palim, said, “Over the past year, we have seen a significant improvement in general consumer sentiment toward the housing market, largely driven by increased optimism that mortgage rates will fall and improved perceptions of both homebuying and home-selling condition. Notably, this improvement in sentiment continues a trend that began about two and a half years ago following the sizeable run-up in home prices during the pandemic, and it is likely due in part to consumers’ slow-but-steady acclimation to current market conditions. Of course, high home prices and high mortgage rates remain the primary reasons why the vast majority of consumers think it’s a ‘bad time to buy’ — trends that we expect to continue into the new year.”