The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) increased 0.1 points in August to 93.8, another new survey high. The HPSI is up 5.8 points compared to the same time last year.

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Despite five of the six HPSI components remaining flat or decreasing month over month, an increase of 11 percentage points in the net "Mortgage Rates Will Go Down" component drove the index slightly higher. On a year-over-year basis, the forward-looking mortgage rates component is up 35 percentage points.

"Growing expectations that mortgage rates will remain flat or decline are reflected in the HPSI's latest reading, which is now at a survey high even though other indicators of economic and housing market sentiment are flat to negative," said Doug Duncan, senior VP and chief economist. "Unfortunately, much of the lower interest rate environment can be attributed to global economic uncertainties, which appear to have dampened consumer sentiment regarding the direction of the economy. We do expect housing market activity to remain relatively stable, and the favorable rate environment should continue supporting increased refinance activity."

HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS

  • The net share of Americans who say it is a good time to buy a home decreased 1 percentage point to 25%. This component is up 4 percentage points from the same time last year.
  • The net share of those who say it is a good time to sell a home decreased 4 percentage points to 40%. This component is up 2 percentage points from the same time last year.
  • The net share of those who say home prices will go up over the next 12 months decreased 1 percentage point to 36%. This component is down 2 percentage points from the same time last year.
  • The net share of Americans who say mortgage rates will go down over the next 12 months increased 11 percentage points to -17%. This component is up 35 percentage points from the same time last year.
  • The net share of Americans who say they are not concerned about losing their job over the next 12 months decreased 4 percentage points to 77%. This component is down 3 percentage points from the same time last year.
  • The net share of those who say their household income is significantly higher than it was 12 months ago remained unchanged at 21%. This component is down 1 percentage point from the same time last year.