Americans grew more optimistic about the housing market in April, according to an index by Fannie Mae.
The agency’s Home Purchase Sentiment Index (HPSI) increased 2.2 points in April to 86.7. The HPSI is up 3 percent year-over-year. Five out of six components measured by the HPSI increased.
“The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a release.
“Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track,” Duncan added.
The index found the share of Americans who said now is a good time to buy a home increased 5 percent to 35 percent, while those who think now is a good time to sell a home decreased 5 percent to 26 percent.
The share of consumers expressing confidence about their job stability increased 7 percent to 77 percent, and those reporting having substantially more household income than a year ago increased 2 percent to 13 percent.
Additionally, the HPSI found that those who believe home prices will go up increased 1 percent to 45 percent.