In Washington, DC, the Fannie Mae Home Purchase Sentiment Index (HPSI) remained stable in April, holding at 71.9, reflecting a market adjusting to elevated interest rates and home prices. This month, 67% of respondents felt it was an opportune time to sell a property, an increase from earlier in the year, while only 20% believed it was a favorable time to buy, despite a slight uptick. The anticipation for lower mortgage rates over the next year has decreased to 26% among participants, signaling a cautious outlook. Year over year, the index has risen by 5.1 points.
Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, noted that the housing market sentiment has plateaued, with consumers adopting a cautious ‘wait and see’ stance. Early optimism driven by hopes for falling mortgage rates has been dampened by persistent inflation and climbing home and mortgage costs, affecting buyer and seller sentiments. Although selling conditions are viewed favorably, ongoing affordability issues might slow the pace of home sales.
Key aspects of the April Home Purchase Sentiment Index include a slight decrease in the percentage of those who view it as a good time to buy, now at 20%, while those seeing it as a good time to sell have slightly increased to 67%. Expectations for home prices and mortgage rates have shown minor shifts, reflecting a cautious consumer outlook on the housing market’s future trajectory.
The HPSI is derived from Fannie Mae’s National Housing Survey, which captures consumer attitudes and expectations about the housing market, forming a comprehensive gauge for housing conditions. For more insights and detailed findings from the Home Purchase Sentiment Index and the National Housing Survey, visit Fannie Mae’s Surveys page.
For more information, read the original press release from: https://www.fanniemae.com/newsroom/fannie-mae-news/housing-sentiment-again-shows-signs-plateauing