Fannie Mae's HPSI decreased by just 0.1 points to 75.7 for August 2021. Survey respondents are showing signs of optimism on the current homebuying conditions as well as their upward expectations of home price growth for the first time since March 2021, according to the report.
“The HPSI remained relatively flat this month, suggesting to us that the continued strength of demand for housing and favorable home-selling conditions may be offsetting broader concerns about the Delta variant and inflation that have negatively impacted other consumer confidence indices,” said Mark Palim, Fannie Mae vice president and deputy chief economist. “Most consumers continue to report that it's a good time to sell a home – but a bad time to buy – and they most frequently cite high home prices and a lack of supply as their primary rationale. However, the 'good time to buy' component, while still near a survey low, did tick up for the first time since March, perhaps owing in part to the favorable mortgage rate environment and growing expectations that home price growth will begin to moderate over the next twelve months.”
According to the report, the percentage of respondents who say it is a good time to buy a home increased from 28% to 32%, while the percentage who say it is a bad time to buy decreased from 66% to 63%. As a result, the net share of those who say it is a good time to buy increased 7% month-over-month.
On the opposite side of the spectrum, the percentage of respondents who say it is a good time to sell a home decreased from 75% to 73%, while the percentage who say it's a bad time to sell decreased from 20% to 19%. As a result, the net share of those who say it is a good time to sell decreased 1% month-over-month.
Meanwhile, the number of respondents who believe home prices will rise in the next year fell from 46% to 40%. The number of respondents who believe home prices will decline increased from 21% to 24%.
Additionally, the percentage of respondents who say mortgage rates will go down in the next 12 months increased from 5% to 6%, while the percentage who expect mortgage rates to go up decreased from 57% to 53%. The share who think mortgage rates will stay the same increased from 31% to 35%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months increased 5% month-over-month.
Read the complete report from Fannie Mae's HPSI to find out more about consumer's optimism on current homebuying conditions in the U.S.
