’s Home Purchase Sentiment Index increased from December to January by 1.3 points to 93.0, marking the third consecutive month of upward motion and putting it within a hair of the 93.8 survey high set last year.
On a year-over-year measurement, the index was up by 8.3 points. During January, four of the six index components recorded month-over-month gains, including the percentage shares of Americans who believe it is a good time to sell a home and believe mortgage rates will go down or stay the same over the next 12 months.
“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 homebuying and home-selling conditions. Favorable views on job security and personal financial expectations reflect the strength of the labor market, which we believe will continue to bolster housing demand.”