Latest HPSI reading shows consumers increasingly concerned about terms of buying and selling a home

WASHINGTON, August 8, 2022 /PRNewswire/ — The Fannie Mae Index (OTCQB: FNMA) of Home Buying Sentiment® (HPSI) fell 2.0 points in July to 62.8, its lowest level since 2011 and well below the all-time high set in 2019. Meanwhile, the percentage of consumers believing now is a good time to sell has started to decline in recent months, from 76% in May to 67% in July. Overall, four of the index’s six components were down month over month, including the component associated with home price growth expectations, which has fallen significantly in recent months. but who remains positive on the net. Year over year, the full index is down 13.0 points.

“The IPSH has declined steadily for much of the year as higher mortgage rates continue to hurt housing affordability,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Unfavorable mortgage rates are increasingly cited by consumers as one of the main reasons for the growing perception that now is a bad time to buy, as well as sell, a home. that selling conditions are easing, as the ‘Good Time to Sell’ component has declined significantly over the past two months and, on the net, fewer consumers expect house prices to With house price growth slowing and expected to slow further, we believe consumer reaction to current housing conditions is likely to be increasingly mixed: some homeowners may choose to list their homes earlier to take advantage of perceived high prices, while some potential buyers may choose to postpone their buying decision in the belief that house prices could to lower. Overall, this month’s HPSI results appear to confirm our expectation of moderating home sales over the coming year.”

Home Buying Sentiment Index – Component Highlights

Fannie Mae’s Home Buying Sentiment Index (HPSI) fell 2.0 points in July to 62.8. The HPSI is down 13.0 points from the same period last year. Read the full research report for more information.

  • Good/bad time to buy: The percentage of respondents who say it’s a good time to buy a house fell from 20% to 17%, while the percentage who say it’s a bad time to buy a house fell from 75% to 76 %. As a result, the net share of those saying now is a good time to buy fell by 4 percentage points month-over-month.
  • Good/bad time to sell: The percentage of respondents who say it’s a good time to sell a home has dropped from 68% to 67%, while the percentage who say it’s a bad time to sell has fallen from 26% to 27%. As a result, the net share of those saying now is a good time to sell fell by 2 percentage points month-over-month.
  • Expectations on the price of the house: The percentage of respondents who say house prices will rise over the next 12 months has fallen from 44% to 39%, while the percentage who say house prices will fall has fallen from 27% to 30%. The share that thinks house prices will stay the same has risen from 23% to 26%. As a result, the net share of Americans who say house prices will rise has fallen by 8 percentage points month over month.
  • Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will fall over the next 12 months rose from 5% to 6%, while the percentage who expect mortgage rates to rise remained unchanged at 67%. The share that thinks mortgage rates will stay the same remained unchanged at 21%. As a result, the net share of Americans who say mortgage rates will fall over the next 12 months has increased by 1 percentage point month over month.
  • Job loss problem: The percentage of respondents who say they are not worried about losing their job in the next 12 months remained unchanged at 78%, while the percentage who say they are worried rose from 21% to 22%. As a result, the net share of Americans who say they are not worried about losing their job fell by 1 percentage point month-over-month.
  • household income: The percentage of respondents who say their household income is significantly higher than 12 months ago has fallen from 25% to 24%, while the percentage who say their household income is significantly higher lower decreased from 16% to 13%. The percentage of those who say their household income is about the same rose from 58% to 61%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago has increased by 2 percentage points month-on-month.

About the Fannie Mae Home Buying Sentiment Index
The Home Purchase Sentiment Index® (HPSI) summarizes consumer home buying sentiment information from Fannie Mae’s National Housing Survey® (NHS) into a single number. The IPSH reflects current consumer views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision-making. The IPSH is constructed from responses to six NHS questions that solicit consumers’ assessments of housing market conditions and address topics related to their home buying decisions. The questions ask consumers if they think it’s a good or bad time to buy or sell a home, in which direction they expect home prices and mortgage interest rates to go, in how worried they are about losing their job and whether their income is higher than it was a year ago.

About Fannie Mae’s National Housing Survey
The most detailed consumer attitude survey of its kind, Fannie Mae’s National Housing Survey (NHS), polled around 1,000 respondents by live telephone to gauge their attitudes towards the home ownership and rental, home and rental price changes, property distress, economy, household finances and overall consumer confidence. Landlords and tenants are asked to answer more than 100 questions used to track attitude change, six of which are used to construct the HPSI (results are compared to the same survey conducted monthly from June 2010). For more information, please consult the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we can help industry partners and market players focus our collective efforts to support the housing market. The July 2022 The National Housing Survey was conducted between July 1, 2022 and July 21, 2022. Most data collection took place during the first two weeks of this period. The interviews were conducted by ReconMR on behalf of PSB Insights and in coordination with Fannie Mae.

Detailed HPSI and NHS results
For detailed results from the Home Buying Sentiment Index and the National Housing Survey, as well as a brief overview of the IPSH and a detailed white paper, technical notes on the methodology of the NHS and the questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. In-depth studies on special topics are also available on the site, which provide a detailed assessment of the combined results of data from three monthly studies of NHS results.

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About Fannie Mae
Fannie Mae advances equitable and sustainable access to quality, affordable homeownership and rental housing for millions of people across America. We enable the 30-year fixed rate mortgage and encourage responsible innovation to make buying and renting a home easier, fairer and more accessible. To learn more, visit:
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The opinions, analyses, estimates, forecasts and other views of Fannie Mae’s Economics and Strategy Research (ESR) Group or survey respondents included herein should not be construed as indicating business prospects or results. expected from Fannie Mae, are based on a number of assumptions, and are subject to change without notice. How this information will affect Fannie Mae will depend on many factors. Although the ESR group bases its opinions, analyses, estimates, forecasts and other points of view on information which it considers reliable, it does not guarantee that the information provided in these documents is accurate, up-to-date or suitable for a particular purpose. . Changes in the assumptions or information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts and other views published by the ESR Group represent the views of that group or of survey respondents as of the date indicated and do not necessarily represent the views of Fannie Mae or of his direction.

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