On Monday (11-8-21), Fannie Mae released their Home Purchase Sentiment Index (HPSI) for October. The October HPSI increased one point to a reading of 75.5, with consumers expressing mixed feeling on the current homebuying and home selling markets. In addition, a good majority of those polled felt pessimistic toward the overall financial landscape of the U.S. economy.
Overall, four of the six components of the HPSI increased month-over-month, with slightly greater shares of consumers reporting that it was a good time to buy a home and sell a home — with those numbers now sitting at 30% and 77%, respectively, up from 28% and 74% last month.
In a statement prepared for the release of October’s HPSI, Doug Duncan, Fannie Mae SVP and Chief Economist said, “While homebuying and home-selling sentiment remain at historically low and high levels, respectively, more consumers now expect that their personal financial situation will not improve over the next 12 months. This is particularly true among surveyed homeowners and older age groups.”
“In October, consumers also reported greater concern about the direction of the economy, with ‘right-track’ sentiment reaching its lowest level since October 2013,” Duncan added. “We believe the uptick in negative economic sentiment is likely a function of ongoing supply chain disruptions and inflation concerns. However, while economic uncertainty could potentially dampen mortgage demand over the longer term, we believe current market conditions remain conducive to home purchase activity, as demand for homes continues to far outstrip the supply available for sale.”
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National Housing Survey: Consumers’ Attitude Toward Housing Conditions Remains Mixed