HPSI Dips on Diminished Home Buyer and Seller Sentiment
The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 3.1 points in October to 85.2, falling from the all-time high matched last month. The decline can be attributed to decreases in four of the six HPSI components. The net share of respondents who said now is a good time to sell a home decreased 8 percentage points compared to September but remains up 11 percentage points compared to the same period last year. Additionally, the net share who reported that now is a good time to buy a home fell 6 percentage points in October. Americans also expressed a decreased sense of job security, with the net share who say they are not concerned about losing their job decreasing 5 percentage points. The net share of consumers who reported that their income is significantly higher than it was 12 months ago fell by 1 percentage point, while the net share of those who believe mortgage rates will go down increased 1 percentage point. Finally, the net share who said home prices will go up in the next 12 months remained flat in October.
"The modest decrease in October's Home Purchase Sentiment Index is driven in large part by decreases in favorable views of the current home-buying and home-selling climates, a shift we expect at this time of year moving out of the summer home-buying season," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Indicators of broader economic and personal financial sentiment remain relatively steady. Overall, these results are consistent with our view that the housing market will continue its slow, upward grind through 2018."
On this webpage you will find a news release with highlights from the HPSI and NHS results, the latest Data Release highlighting the consumer attitudinal indicators, month-over-month key indicator data, an overview and white paper about the HPSI, technical notes providing in-depth information about the NHS methodology, the questionnaire used for the survey, and a comparative assessment of Fannie Mae’s National Housing Survey and other consumer surveys.
Downloads and Related Links
News Release
October 2017 National Housing Survey Data Release (PDF)