Mon, 07 November 2022 | consumers economy housing
The Fannie Mae Home Purchase Sentiment Index® (HPSI) dropped 4.1 points in October to 56.7, its lowest score since the index's launch in 2011 and its eighth consecutive monthly decline. As consistently high home prices and unfavorable mortgage rates continue to drive consumers' housing affordability concerns, five of the six index components dropped month over month, including those related to home purchasing and selling conditions. Only 16% of respondents said it's a good time to buy a house right now, a new survey low, while 59% of respondents said it's a good time to sell a house right now in October, a steep decline from the previous month's 59%. The total index is down 18.8 points on a yearly basis.
According to Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, "The HPSI reached an all-time survey low this month, in line with projections that the housing market will continue to cool in the months ahead." "Consumers are becoming more negative about the conditions surrounding both buying and selling homes. The "poor time to purchase" component of the poll surged this month to a new high amid continuously high property prices and unfavorable mortgage rates, while the "good time to sell" component maintained its downward trend. Consumers continue to be concerned about the movement of home prices, and expectations that prices will fall, particularly among homeowners, hit a new survey high, adding credence to our prediction of home price decreases in 2023. We anticipate that home sales will continue to decline in the upcoming months, in line with our estimate, as ongoing affordability issues diminish demand from homebuyers and homeowners feel hesitant to sell at potentially lower prices."
Source: Fannie Mae