The Fannie Mae Home Purchase Settlement Index (HPSI) fell for the second month in a row, the company announced. Five of the six components dropped month-over-month.
The HPSI fell to 74 in December, down 6 points from the month before, and down 17.7 points from the year before.
“The HPSI declined for the second consecutive month and fell to its lowest level since May 2020, as consumers adjusted to the worsening COVID-19 conditions of the first few weeks of December – the survey collection period,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a release.
The index saw a drop in survey respondents who said it’s a good time to buy, a good time to sell, as well as an increase in people expressing job concerns, as well as concerns about household income and home price expectations. Mortgage rate exceptions remained unchanged.
“Both the ‘good time to sell’ and ‘good time to buy’ components fell significantly, with respondents overwhelmingly noting the unfavorability of economic conditions,” Duncan said.
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