Fannie Mae: Consumers Take Dim View of Current Homebuying Conditions
Fannie Mae’s Home Purchase Sentiment Index remained relatively flat in May, increasing by 1.0 points to 80.0. Although four of the HPSI’s six components increased month over month, the homebuying conditions component declined to an all-time survey low, with only 35% of respondents believing it’s a good time to buy a home, down from 53% in March.
Doug Duncan, Fannie Mae’s chief economist, said that within May’s flat reading for the HPSI, “some of its underlying components shifted significantly, with consumers feeling substantially more positive about their jobs and income, while at the same time showing even greater pessimism about homebuying conditions compared to last month.”
He added that despite the challenging buying conditions, “consumers do appear more intent to purchase on their next move, a preference that may be supported by the expectation of continued low mortgage rates, as well as the elevated savings rate during the pandemic.”