Homebuying Pessimism Increases

Even though The Fannie Mae Home Purchase Sentiment Index remained relatively flat in May, those who said it was a bad time time increase from a plurality to majority. (FM)

• M-O-M: The HPSI increased in May by 1.0 point month-over-month to 80.0.

• Y-O-Y: The HPSI is up 12.5 points compared to the same time last year

The big change among the components that make up the index was the good time to buy indicator.

• Respondents who say it is a good time to buy a home decreased from 47% to 35%

• Respondents who say it is a bad time to buy increased from 48% to 56%

Doug Duncan, Senior Vice President and Chief Economist, said in a statement, “…despite the challenging buying conditions, consumers do appear more intent to purchase on their next move, a preference that may be supported by the expectation of continued low mortgage rates, as well as the elevated savings rate during the pandemic, which may have allowed many to afford a down payment.”