Buyer Sentiment Falls To All-Time Low As Unaffordability Remains Problematic

Americans are increasingly pessimistic about their long-term prospects in the housing market, citing unaffordability as their main concern. Fannie Mae’s Home Purchase Sentiment Index fell 2.5 points in May to a reading of 69.4, a record low for the survey. Just 14% of respondents believe it’s a good time to buy a home, a steep drop from the month prior’s 20%. Altogether, 86% of Americans think it’s a bad time to buy. “Consumer sentiment toward housing declined from its recent plateau, as an increasing share of consumers struggle to find the positives in the current housing market,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “While many respondents expressed optimism at the beginning of the year that…

Mortgage Rates Overtake Home Prices As Main Buyer Concern

Consumer sentiment is stuck in the pits thanks to soaring mortgage rates. Fannie Mae’s Home Purchase Sentiment Index sank further in September, down by 2.4 points to 64.5. The full HPSI is up 3.7 points YOY, a decline from August. Five of the index’s six components fell month-over-month. The home price expectations component increased, resulting in a net negative outlook.  Only 16% of respondents say it’s a good time to buy a home, down from 18% last month, while 84% say it’s a bad time to buy. This is new survey high. The share of respondents who say it’s a good time to sell dropped as well, down to 63% from 66%. Driving this pessimistic streak are mortgage rates, which…

Consumer Sentiment Stuck Near Lows

Consumer sentiment is stuck in the pits as mortgage rates remain elevated. Fannie Mae’s Home Purchase Sentiment Index continues skimming its low-level plateau, increasing in August by 0.1 points to 66.9. The HPSI is up 4.9 points YOY. Half of the index’s six components rose from July while the others stayed stagnant, resulting in a net negative outlook. Only 18% of respondents say it’s a good time to buy a home. The share of respondents who say it’s a good time to sell rose, however, to 66%. Respondents largely believe that home prices will go up in the next 12 months (41%), though that number decreased by 2% from July. “Consumers remain pessimistic toward the housing market in general and…

Most Consumers Think The Economy Is On The “Wrong Track”

Most consumers think the economy is on the “wrong track,” growing frustrated as they struggle against inflation and a slowing economy. Fannie Mae’s most recent Home Purchase Sentiment Index (HPSI) fell 3.4 points in June to its lowest reading in ten years, while a survey-high 81% of consumers reported they believe the economy is on “the wrong track.” The full index is down 14.9 points YOY. Four of its six components fell from the month prior. More Americans reported they are worried about losing their jobs in the next twelve months (+5%) and fewer reported their income has significantly increased in the past year (-1%.) For the first time in almost seven years, a plurality of respondents said they would…

Morning Roundup (5/9/2022)– Consumer Sentiment Down, Refi Closing Costs

Good Morning! Today is Monday, May 9. Today is Victory Day, a holiday in Russia that has become a celebration of military might. Jill Biden made an unannounced visit to western Ukraine and met with the nation’s First Lady. A shortage of baby formula in the U.S. is causing some retailers to limit how much customers can buy. The Mortgage Note Reports Sentiment Down: Consumers across the country continue to report difficult homebuying conditions, Editor Kimberley Haas writes. OriginPoint Hire: John Stewart is joining OriginPoint as its new EVP of National Sales. Refi Closing Costs: The national average closing costs for a refinance in 2021 were up $88 from 2020 but were still less than 1% of the average refinance loan amount. And in other mortgage and housing news… NAR…

Housing Market Pessimism Reaches New Heights

Consumer sentiment towards home buying fell in March, pushed down by rising interest rates and difficult conditions generally, according to Fannie Mae’s Home Purchase Sentiment Index. The HPSI decreased by 2.1 points to 73.2, with four of its six components down month-over-month. The full index is down 8.5 points YOY. In March, 69% of respondents said they expect mortgage rates to keep rising, a survey-high. At the same time, the “Good Time To Buy” component tanked to a survey low, with 73% saying it’s a bad time to buy. “This month, we also saw a survey-high share of consumers expecting their financial situations to worsen over the next year; this was especially true among current homeowners,” said Mark Palim, Fannie…

Morning Roundup (3/28/2022)– Consumer Sentiment

Good Morning! Today is Monday, March 28. The White House will propose a 20% minimum tax on households worth more than $100 million. Russian and Ukrainian delegations will hold another round of peace talks in Turkey. Troy Kotsur became the first deaf man to win an acting Oscar for his role in “CODA,” which also won Best Picture. The Mortgage Note Reports Debt And Inflation Impacting The Housing Market: The pandemic has driven many people deeper into credit card debt. That, along with rising interest rates and inadequate housing stock, is reducing the number of new mortgages, Gregory Bresiger reports. Consumer Sentiment: Consumer sentiment fell again in March, hitting its lowest level since August 2011 thanks to rising rates, war, and inflation.…

Consumer Sentiment Down To Its Lowest Point Since 2011

March brought another dip in consumer sentiment, with the University of Michigan’s index registering its lowest level since August 2011. The March index was revised down to 59.4 from a reading of 59.7 two weeks ago. An index of 100 is equal to sentiment in Q1 1966. A year ago at this time, the index was 84.9. Consumer sentiment is now down 41.6 points from its peak in February 2020 and is even below the lows seen in four of the last six recessions.  “When asked to explain changes in their finances in their own words, more consumers mentioned reduced living standards due to rising inflation than any other time except during the two worst recessions in the past fifty…

HPSI Up Despite Consumer Concerns Over Home Prices And Mortgage Rates

More consumers than ever think mortgage rates and home prices will continue to rise, according to Fannie Mae’s Home Purchase Sentiment Index (HPSI). The HPSI rose by 3.5 points to 75.3 in February, with five of the index’s six components increasing month-over-month despite respondents’ surly attitude towards home prices and interest rates. However, the full index dropped 1.2 points year-over-year (YOY). The “Good Time to Buy” component is still hovering near its record low, with consumers saying they are deterred from homebuying by high prices. Respondents to the survey said they feel an improved sense of job security, but a significantly greater share– 67%, a record high for the HPSI– assume mortgage rates will rise higher. The report notes this…

HPSI Suggests A Slower Housing Market In 2022

Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 0.5 points to 74.2 in December, the GSE reported. Three of the index’s six components fell month-over-month as consumers once again reported pessimistic views on the homebuying market. Year-over-year, the index rose by 0.2. A record-low 26% of respondents reported they believe it’s a good time to buy a home, while 76% said it’s a good time to sell.  This is a drastic drop from December 2020, when 50% said it was a good time to sell and 52% said it was a good time to buy. Month-over-month, the share of consumers that reported it’s a bad time to buy a home rose from 64% to 66%, while the net share of…