The Fannie Mae Home Purchase Sentiment Index (HPSI) showed a third straight monthly increase. Numbers are approaching the high hit last year.
For January 2020, the HPSI increased 1.3 points to 93.0 and moved closer to the survey high of 93.8 set in 2019. Four of the six HPSI components increased month over month, including the percentage of Americans who believe that mortgage rates will go down or stay the same over the next 12 months, which now sits at 55 percent.
Year over year, the HPSI is up 8.3 points, reflecting in part consumers’ increasingly positive view that it’s a good time to both buy and sell a home. “The HPSI posted another strong reading to open the new year,helped in large part by the upward trend in the share of consumers saying they expect mortgage rates to remain steady,” said Doug Duncan, senior vice president and chief economist. “Low rates continue to be a key driver of consumer optimism about both current home buying and home-selling conditions.
The full monthly HPSI report is available here.