Fueled by an increase in the percentage of Americans reporting higher incomes, the Fannie Mae Home Purchase Sentiment Index (HPSI) rose slightly in November.
Fannie Mae said the HPSI rose 0.5 points to 86.2 last month. During November, the net share of Americans who reported significantly higher income jumped 5 points; the net share of Americans who said it is a good time to buy a home rose 2 points; and the net share who said it is a good time to sell a home remained unchanged, the HPSI found.
“The HPSI has moved within a tight range over the past five months, as positive sentiment regarding the overall economy continued to offset cooling housing sentiment,” Fannie Mae Chief Economist Doug Duncan said in a release. “Consumers’ perceptions of growth in their household income reached a survey high this month, helping to absorb some of the impact of increasing mortgage rates on housing market activity.
“Meanwhile, the net share of consumers expecting home prices to increase over the next 12 months continues to moderate, dropping by 13 percentage points since this time last year,” Duncan added.
The HPSI found the share of respondents who expect home prices to go up fell 4 points; the net share who expressed greater job confidence fell 1 point; and the net share who expect mortgage rates to go down increased 1 point.