After falling 11.7 points last month, the Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index decreased an additional 17.8 points in April to 63.0, its lowest reading since November 2011, the company said Thursday.

Five of the six HPSI components decreased month over month, as consumers reported a markedly more pessimistic view of home buying and home selling conditions. Moreover, on net, more consumers reported that their household income is significantly lower today than it was 12 months ago. Year over year, the HPSI is down 25.3 points.

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"The HPSI experienced another unprecedented decline in April, falling to its lowest level since November 2011," said Doug Duncan, senior vice president and chief economist. "The 17.8-point decrease reflected consumers' deepening concerns about both their incomes and the housing market. Attitudes about whether it's a good time to sell a home fell most sharply, dropping an additional 23 points this month. Individuals' heightened uncertainty about job security, as registered in the survey over the last two months, is likely weighing on prospective home buyers, who may be more wary of the substantial, long-term financial commitment of a mortgage. On average, consumers expect home prices to fall 2% over the next 12 months, the lowest expected growth rate in survey history. While consumers did grow more pessimistic in April about whether it's a good time to buy a home, low mortgage rates remain a driver of purchase optimism. We expect that the much steeper decline in selling sentiment relative to buying sentiment will soften downward pressure on home prices."

Home Purchase Sentiment Index – Component Highlights

  • Good/Bad Time to Buy: The percentage of Americans who say it is a good time to buy a home decreased from 56% to 48%, while the percentage who say it is a bad time to buy increased from 36% to 46%. As a result, the net share of Americans who say it is a good time to buy decreased 18 percentage points.
  • Good/Bad Time to Sell: The percentage of Americans who say it is a good time to sell a home decreased from 52% to 29%, while the percentage who say it's a bad time to sell increased from 36% to 65%. As a result, the net share of those who say it is a good time to sell decreased 52 percentage points.
  • Home Price Expectations: The percentage of Americans who say home prices will go up in the next 12 months decreased this month from 39% to 23%, while the percentage who said home prices will go down increased from 22% to 34%. The share who think home prices will stay the same increased from 32% to 36%. As a result, the net share of Americans who say home prices will go up decreased 28 percentage points.
  • Mortgage Rate Expectations: The percentage of Americans who say mortgage rates will go down in the next 12 months increased this month from 20% to 23%, while the percentage who expect mortgage rates to go up decreased from 39% to 33%. The share who think mortgage rates will stay the same increased from 33% to 35%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months increased 9 percentage points.
  • Job Concerns: The percentage of Americans who say they are not concerned about losing their job in the next 12 months decreased from 77% to 76%, while the percentage who say they are concerned remained the same at 23%. As a result, the net share of Americans who say they are not concerned about losing their job decreased 1 percentage point.
  • Household Income: The percentage of Americans who say their household income is significantly higher than it was 12 months ago decreased from 27% to 20%, while the percentage who say their household income is significantly lower increased from 11% to 21%. The percentage who say their household income is about the same decreased from 61% to 58%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago decreased 17 percentage points.