05/07/2021 | Press release | Distributed by Public on 05/07/2021 06:24
WASHINGTON, DC - The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) decreased in April by 2.7 points to 79.0. Four of the HPSI's six components decreased month over month, most notably the component related to home-buying conditions, which turned net negative for the first time in the survey's history. This decline was offset in part by consumers' ongoing optimism toward home-selling conditions, which continued its significant rise from this time last year and has nearly returned to its pre-pandemic peak. Year over year, the HPSI is up 16.0 points.
'April's HPSI reading appears to have been acutely impacted by the ongoing lack of housing supply despite improving economic conditions,' said Doug Duncan, Senior Vice President and Chief Economist. 'Consumer sentiment toward buying homes reached the lowest level in our survey's ten-year history; unsurprisingly, respondents overwhelmingly cited the lack of supply and high home prices as primary reasons for their pessimism. The decrease in homebuying sentiment likely indicates that some consumers, potentially flush with savings - perhaps boosted in part by stimulus payments - may be attempting, but failing, to buy a home due to heightened competition for relatively few listed homes. Notably, consumers in the household income range of $50,000 to $100,000, a range inclusive of the Census Bureau's reported median household income level, showed a particularly large decrease in overall housing sentiment, and we know that the housing market serving the affordable segment has been particularly competitive.'
Duncan continued, 'Conversely, consumer positivity regarding home-selling conditions nearly matched its all-time high, demonstrating a large divergence in perceived conditions between sellers and buyers, as measured by the gap between the two components. As has become standard discourse in the housing industry recently, increasing the supply of homes for sale would certainly help bring balance to this strong seller's market, but unfortunately the most recent data doesn't suggest that inventory is likely to improve in the near future.'
Home Purchase Sentiment Index - Component Highlights
Fannie Mae's Home Purchase Sentiment Index (HPSI) decreased in April by 2.7 points to 79.0.The HPSI is up 16.0 points compared to the same time last year. Read the full research report for additional information.
About Fannie Mae's Home Purchase Sentiment Index
The Home Purchase Sentiment Index (HPSI) distills information about consumers' home purchase sentiment from Fannie Mae's National Housing Survey® (NHS) into a single number. The HPSI reflects consumers' current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers' evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.
About Fannie Mae's National Housing Survey
The most detailed consumer attitudinal survey of its kind, Fannie Mae's National Housing Survey (NHS) polled approximately 1,000 respondents via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts, six of which are used to construct the HPSI (findings are compared with the same survey conducted monthly beginning June 2010). For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to support the housing market. The April 2021 National Housing Survey was conducted between April 1, 2021 and April 27, 2021. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by PSB, in coordination with Fannie Mae.
Detailed HPSI & NHS Findings
For detailed findings from the April 2021 Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results.
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