The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® decreased 2.3 points in September to 91.5, retreating from a survey high in August. The HPSI is up 3.8 points compared to the same time last year.
Three of the six HPSI components decreased month over month, including an 8-percentage point drop in the net "Confidence About Not Losing Job" component and 7-percentage point drop in the net "Home Prices Will Go Up" component. These were partially offset by increases in the "Good Time to Buy" and "Good Time to Sell" components, at 3 and 4 percentage points on net, respectively.
"Consumer sentiment remains relatively strong overall, though uncertainty about the economy and individual financial circumstances appear to be weighing on housing market attitudes a bit more than a month ago," said Doug Duncan, senior vice president and chief economist. "Views about the direction of the economy held relatively steady, and the share of respondents who say it's a good time to buy or sell a home rose slightly. However, consumers who are pessimistic about current housing market conditions are more likely to cite unfavorable economic conditions than the prior month. Job confidence remains high but still well shy of its July reading. Despite some added uncertainty, the September HPSI indicates continued strength in housing market attitudes and is consistent with recent data on housing activity."
HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS