High Home Prices Driving HPSI Down

Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 1.2 points to 74.5 in September. Three of the index’s six components dropped month-over-month. The full index is down 6.5 points year-over-year. More consumers, 66%, reported that it’s a bad time to buy a home in September than in August, when 63% of respondents said the same. Only 28% said they believe it’s a good time to buy. The home-selling conditions component stayed flat, as a majority of consumers reported they believe it’s a good time to sell. “The HPSI declined slightly this month but remains within the general bounds we’ve seen since the end of last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist.  “The survey’s story…

HPSI Stays Flat, But Buyers Are Optimistic About The Future

As the housing market cools slightly and prices trend downward, consumers feel more positive about their homebuying prospects, according to Fannie Mae’s August Home Purchase Sentiment Index (HPSI). The HPSI is a national telephone survey that polls 1,000 consumers a month about owning or renting a home, price changes, the economy, and overall consumer confidence. The results can help predict future housing outcomes. The HPSI was essentially unchanged in August, falling 0.1 points to 75.7, but the survey revealed that buyers are starting to feel more optimistic about the housing market. For the first time since March, more respondents said they believe it’s a good time to buy a home, rising from 28% to 32%. The percentage of those who…