Affordability Challenges Push Housing Sentiment Down
Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 2.4 points to 71.8 in January, its lowest level since May 2020, the GSE reported. The full index is down 5.9 points year-over-year. Affordability concerns drove sentiment down, with four of the index’s six components falling month-over-month. Only 25% of respondents said they believed it’s a good time to buy a home, an all-time low for the survey, while 69% said it’s a good time to sell. “Consumer sentiment toward housing softened further in January – the HPSI fell 2.4 points to 71.8 – as affordability and supply constraints continue to limit home purchase opportunities, particularly among younger households,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. Younger consumers…