Fannie Mae's Home Purchase Sentiment Index™ (HPSI) increased 3.5 points to 83.7 in April, bouncing back from an 18-month low in March, yet overall consumer housing sentiment has remained generally flat. The HPSI Good Time to Sell component approached an all-time survey high in April, posting the largest increase among the six HPSI components. The net share of consumers who think now is a good time to sell a home rose 16 percentage points. However, the Good Time to Buy component dipped to an all-time survey low, creating the narrowest gap on record between these two measures. In addition, although the net share of consumers reporting confidence about not losing their job rose 6 percentage points, the net share of consumers reporting that their income was significantly higher than it was 12 months ago stayed flat from the prior month.
"We can partially attribute the sizable gain in April in home selling optimism both to a correction for last month's unexpected dip and to typical seasonal strength in housing activity in the spring and summer," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season."
HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS
Fannie Mae's April 2016 Home Purchase Sentiment Index (HPSI) rose 3.5 percentage points in April to 83.7. More consumers think home prices will go up over the next 12 months compared to March, and slightly fewer consumers expect Mortgage Rates to go up over the next 12 months. Overall, the HPSI is up 1.4 points since this time last year.
- The net share of Americans who say that it is a good time to buy a house fell 3 percentage points to 30%, reaching an all-time survey low.
- Selling sentiment approached its all-time survey high in March, with the net percentage of those who say it is a good time to sell rising 16 percentage points to 15%.
- The net share of respondents who say that home prices will go up rose 3 percentage points to 37%, continuing the rising trend from March.
- The net share of those who say mortgage interest rates will go down fell 1 percentage point to negative 46%.
- The net share of respondents who say they are not concerned with losing their job rose 6 percentage points to 74%, nearly making up the 7 percentage point decrease in March.
- The net share of respondents who say their household income is significantly higher than it was 12 months ago remained the same at 11%.