A majority of Americans continue to report that it’s a good time to both buy and sell homes, according to Fannie Mae’s latest Home Purchase Sentiment Index (HPSI).
In January, the HPSI rose for the third consecutive month, increasing 1.3 points to 93 and moving closer to the survey high of 93.8 set last year. Four of the six HPSI components increased month-over-month, including the percentage of Americans who believe mortgage rates will go down or stay the same over the next 12 months (55 percent).
Year-over-year, the HPSI increased 8.3 points in January.
“The HPSI posted another strong reading to open the new year, helped in large part by the upward trend in the share of consumers saying they expect mortgage rates to remain steady,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a release.
“Low rates continue to be a key driver of consumer optimism about both current home buying and home-selling conditions,” Duncan said. “Favorable views on job security and personal financial expectations reflect the strength of the labor market, which we believe will continue to bolster housing demand.”
During January, the percentage of Americans who said it was a good time to buy remained the same (59 percent), while the percentage who said it was a bad time to buy decreased from 32 percent to 30 percent, according to the HPSI.
Fannie Mae said the percentage of Americans who in January said it was a good time to sell increased 65 percent 66 percent, while the percentage who said it was bad time to sell decreased from 22 percent to 21 percent.
The percentage of Americans who in January said home prices will go up in the next 12 months decreased from 50 percent to 48 percent. The percentage who said home prices will go down decreased from 10 percent to 7 percent. Those who said home prices will stay the same increased from 35 percent to 38 percent.
The percentage of Americans who said they were not concerned about losing their job in the next 12 months remained flat at 86 percent, while the percentage who said they are concerned increased from 12 percent to 14 percent.