Buyers/Seller Shake Off Last Month's Doldrums

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Survey: Buyers/sellers shake off last month’s doldrums

WASHINGTON – May 9, 2017 – Fannie Mae's monthly survey on consumers' attitudes about the current real estate market increased 2.2 points in April after dipping in March.

The Fannie Mae Home Purchase Sentiment Index (HPSI) increased 2.2 percentage points in April to 86.7, and five of the six components that comprise the HPSI rose.

The net share of Americans who say it's a good time to buy a home increased 5 percentage points, though fewer think it's a good time to sell. That component decreased 5 percentage points.

"The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month," says Doug Duncan, senior vice president and chief economist at Fannie Mae. "This is aligned with our market forecast of about 3 percent sales growth in 2017. Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high."

Overall, Duncan says housing "continues on a gradual growth track."

HPSI highlights

  • Fannie Mae's 2017 Home Purchase Sentiment Index (HPSI) increased in April by 2.2 percentage points to 86.7. The HPSI is up 3.0 percentage points compared with the same time last year.
  • The net share of Americans who say it's a good time to buy a home rose 5 percentage points to 35 percent, reversing some of the decrease seen in March.
  • The net percentage of those who say it's a good time to sell decreased by 5 percentage points to 26 percent, falling from last month's all-time survey high.
  • The net share of Americans who say that home prices will go up increased by 1 percentage point in April to 45 percent.
  • The net share of those who say mortgage rates will go down over the next twelve months rose 3 percentage points from last month's survey low to 57 percent.
  • The net share of Americans who say they're not concerned about losing their job rose 7 percentage points to 77 percent, erasing most of last month's decline.
  • The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 2 percentage points to 13 percent in April.

The HPSI is constructed from answers to six questions that solicit consumers' evaluations of housing market conditions and address topics that are related to their home purchase decisions.

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