Home-Selling Sentiment Moves Higher Ahead of Spring Homebuying Season
WASHINGTON, March 7, 2024 /PRNewswire/ -- The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) increased 2.1 points in February to 72.8, inching higher for the third consecutive month, due primarily to increased optimism around home-selling conditions. In February, 65% of consumers said it's a good time to sell a home, up from 60% last month. The share of those who believe it's a good time to buy a home ticked up slightly this month but remains at an extremely pessimistic 19%. Additionally, a plurality of consumers continues to believe that mortgage rates will go down over the next 12 months, although on net that component fell slightly this month. Overall, the full index is up 14.8 points year over year.
- In February, 65% of consumers said it's a good time to sell a home, up from 60% last month.
- Additionally, despite the recent uptick in rates, consumers remain relatively optimistic that mortgage rates will decrease over the next 12 months.
- A decline in mortgage rates – and the resulting uptick in sentiment – would obviously bode well for the upcoming spring homebuying season, although affordability will likely remain a significant challenge for buyers, at least until there's a meaningful addition to net supply."
- As a result, the net share of those who say their household income is significantly higher than it was 12 months ago increased 5 percentage points month over month.