The latest Fannie Mae National Housing Survey (NHS) reveals nuanced shifts in consumer sentiment and some persistent caution among potential homebuyers and sellers, offering insight for mortgage professionals navigating a complex housing market.
In April 2025, Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased by 1.1 points from March to 69.2. Despite the month-over-month improvement, the index remains 2.7 points lower than the same period last year, pointing to lingering consumer caution.
Consumer perceptions about buying and selling homes are showing contrasting trends:
- Buying Sentiment: The net share of consumers who believe it's a good time to buy remained unchanged, according to Fannie Mae’s data. While 23% think it's a good time to buy, a significant 77% disagree, reflecting persistent affordability concerns.
Note that this share of consumers — those who believe it’s a good time to buy — has remained below 30% for several years, reflecting ongoing affordability challenges.
- Selling Sentiment: The net share of those who feel it's a good time to sell dropped by 13 percentage points to 17%. That decline suggests potential sellers are hesitant, possibly due to uncertainties about market conditions and/or replacement home affordability.
Influence Of Economy And Economic Outlook
Consumers' expectations about home prices and mortgage rates are shifting. The net share of consumers expecting home prices to rise in the next 12 months increased by 3 percentage points to 21%, although home price appreciation has slowed significantly in recent months.
Meanwhile, the net share of consumers who anticipate a decline in mortgage rates decreased by 1 percentage point to -9%, pointing to a slightly stronger belief that mortgage rates may remain elevated.
Job Confidence and Income Perceptions
Fannie Mae’s data do show notably positive shifts in employment and income perceptions, which could translate to increased borrower confidence and qualification strength, even as affordability remains an obstacle.
- Job Security: The net share of consumers who reported they’re not concerned about losing their job increased by 15 percentage points to 49%, suggesting heightened job confidence.
- Household Income: The net share of consumers who reported significantly higher household income over the past year rose by 4 percentage points to 12%, indicating improved financial well-being for some households.
With a majority of consumers perceiving it’s a bad time to buy a house, offering solutions that tackle affordability concerns is crucial. And the decline in selling sentiment suggests a need to assist potential sellers in understanding market dynamics and evaluating their options.
Yet, at the same time, consumers are also feeling more secure in their jobs, and more households are reporting income gains — meaning potential homebuyers may be persuadable, if presented with creative financing solutions or compelling value opportunities.
Overall, while there are some signs of improved economic confidence, affordability challenges clearly continue to weigh on consumer sentiment, highlighting the need for tailored strategies in the mortgage industry.
