During September, Fannie Mae’s Home Purchase Sentiment Index (HPSI) reflecting Americans’ sentiments about buying a home matched its all-time high previously reached in June.
With increases in three of the six components measured by the HPSI, the index increased 0.3 points to 88.3 in September, buoyed in part by renters who said September was a good time to buy a home.
“The biggest driver for the increase in the HPSI is the rebound in the good time to buy sentiment, which outweighed the largest drag — a sizable reduction in the net share of consumers expecting home prices to rise over the next year,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a release. “Details in the survey showed a meaningful pickup in the good time to buy component, especially from the renter respondents.
“Additionally, perceptions of easing inventory helped boost the net share saying that now is a good time to buy, which is consistent with less bullish home price appreciation sentiment during the month,” Duncan added. “Overall, we believe that the devastating impacts of the hurricanes will likely weigh on home sales in coming months, posing downside risks for our forecast, which already calls for only a modest gain in home sales this year.”
According to the HPSI, the share of consumers who said September was a good time to buy a home increased 10 percent compared with August. Such optimism was greatest among renters, with the share of those consumers who said September was a good time to purchase a home increasing by 2 percent.
The net share of respondents who reported now is a good time to sell a home also rose. However, the net share of respondents who predict home prices will go up in the next 12 months fell 8 percent.
The net share of those who believe mortgage rates will go down decreased 2 percent; and the net share of respondents who said they were not concerned about losing their job rose by 1 percent.