Consumers were more confident about the economy and the housing market in March than they were the previous month, according to the Fannie Mae Home Purchase Sentiment Index (HPSI).
The HPSI rose 2.5 points in March to 88.3, with increases in three of the six components measured by Fannie Mae.
“The HPSI’s recent run of volatility continued in March, as it recovered last month’s loss and remained within the five-point range of the past twelve months,” Fannie Mae Chief Economist Doug Duncan said in a release. “The primary driver of this month’s increase was the sizable rise in the net share of consumers who think it’s a good time to buy a home, which returned the indicator to its year-ago level. On the whole, a slight majority of consumers continue to express optimism regarding the overall direction of the economy.”
The share of respondents who said now is a good time to buy a home increased 10 percentage points compared to February. Additionally, the share of respondents who said now is a good time to sell a home increased 3 percentage points.
Respondents who in March believed home prices would increase in the next 12 months decreased 3 percentage points, while the share of consumers who said mortgage rates will go down over the next 12 months also increased 5 percentage points.
The share of Americans who in March said they were not concerned about losing their job stayed flat, and the share reporting that their income was significantly higher in March than it was 12 months ago also was unchanged.