Homebuyer Sentiment Increases, but Remains Below Pre-Pandemic HighsBy RISMedia Staff
Homebuyer sentiment increased by 0.6 points to 61.6, the third consecutive increase but still well below pre-pandemic highs and down 10.2 points compared to last year, according to Fannie Mae’s Home Purchase Sentiment Index® (HPSI) for January.
The HPSI found that three of the index’s six components increased month over month, including those associated with home-selling conditions, home price outlook, and household income. In addition, only 17% of respondents believe it’s a good time to buy, likely owing to the ongoing affordability challenges posed by elevated mortgage rates and home prices. Key highlights:
“January’s HPSI results showed that consumer sentiment toward the housing market remains subdued by historical standards,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “For consumers, the same affordability issues are persisting, as they continue to indicate that high home prices and high mortgage rates make it a ‘bad time to buy’ a home. The latest survey data also indicated that the majority of consumers expect home prices to decrease or remain flat over the next year, which may incentivize some potential homebuyers to delay their purchase decision. Although ‘good time to sell’ sentiment ticked upward this month, it’s still much lower than it was a year ago, as purchase affordability remains seriously constrained and mortgage demand has receded. Until we see improvements in affordability via lower home prices and mortgage rates, we expect home sales to remain muted in the coming months.” For the full report, click here. |
Today's Top Stories |