Elevated Mortgage Rates Push Housing Sentiment Even Lower
WASHINGTON, Oct. 9, 2023 /PRNewswire/ -- The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) decreased by 2.4 points in September to 64.5, as elevated mortgage rates further dampened already-pessimistic consumer housing sentiment. Five of the HPSI's six components decreased month over month, including the components measuring perceived homebuying and home-selling conditions. In September, 16% of consumers reported that it's a good time to buy a home, matching the all-time survey low set last year. Additionally, 63% said it was a good time to sell a home, down 3 percentage points compared to the prior month. Only 17% of consumers indicated that they expect mortgage rates to go down over the next 12 months. Overall, the full index is up 3.7 points year over year.
- Consumers Now Point to Mortgage Rates, not Home Prices, as Primary Hindrance to Affordability
WASHINGTON, Oct. 9, 2023 /PRNewswire/ -- The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) decreased by 2.4 points in September to 64.5, as elevated mortgage rates further dampened already-pessimistic consumer housing sentiment. - Only 17% of consumers indicated that they expect mortgage rates to go down over the next 12 months.
- This indicates to us that many homeowners are probably not eager to give up their 'locked-in' lower mortgage rates anytime soon, but it also may reflect the worry of some homeowners that sale values might be suppressed slightly if the pool of qualified homebuyers is constrained by elevated mortgage rates."
- Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months decreased from 18% to 17%, while the percentage who expect mortgage rates to go up remained unchanged at 46%.