Amid encouraging indicators in the labor market and mortgage rates, Americans’ confidence in housing is up, according to the Fannie Mae Home Purchase Sentiment Index® (HPSI), recently released. In July, the HPSI surged to 93.7—a new record. Additionally, the amount of buyers confident in their housing prospects rose, as well as the amount of sellers.
“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges,” Doug Duncan, senior vice president and chief economist at Fannie Mae, says. “Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.
“However, recent financial market events following when the survey data were collected could weigh on consumer views looking ahead,” cautions Duncan.
Source: Fannie Mae