Fannie Mae’s Home Purchase Sentiment Index Drops in November

After three successive months of gains, the Fannie Mae Home Purchase Sentiment Index® (HPSI) fell 1.7 points in November to a reading of 80.0. Three of the six HPSI components decreased month over month, with consumers reporting a more pessimistic view of homebuying conditions, including mortgage rate expectations, but a more optimistic view of home-selling conditions and home prices. Moreover, consumers also reported mixed results regarding job loss concerns and household income changes. Year over year, the HPSI is down -11.5 points. In prepared remarks for the release of the HPSI report Doug Duncan, Senior VP and Chief Economist for Fannie Mae said, “The HPSI appears to have peaked for now as consumers continue to consider how COVID-19 impacts their ability to buy or sell a home. This follows the HPSI’s recovery of slightly more than half of the loss experienced during the first few months of the pandemic.”