WASHINGTON—The housing market continued to expand, according to Fannie Mae’s latest Home Purchase Sentiment Index (HPSI). The index increased 2.6 points in November to 87.8, once again nearing its all-time high from September, the agency reported.
The increase can be attributed to increases in four of the six HPSI components, Fannie Mae stated: The net share of respondents who said now is a good time to buy a home increased seven percentage points compared to October but remains down one percentage point compared to the same period last year. Additionally, the net share who reported that now is a good time to sell a home rose four percentage points in November and is now up 21 percentage points year-over-year. The net share who said home prices will go up in the next 12 months increased six percentage points in November, while Americans also expressed a greater sense of job security, with the net share who say they are not concerned about losing their job increasing four percentage points. Finally, the net share of consumers who reported that their income is significantly higher than it was 12 months ago remained unchanged in November.
“In November, the HPSI rebounded to near its all-time high, returning the index to its gradual upward trend and suggesting fairly stable consumer home-buying attitudes,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “These results are consistent with our expectation that the housing market will continue its modest expansion going forward. Next month’s survey should offer the public a first look at the influence that potential tax reform may have on consumers’ views toward housing and the broader economy.”
Index highlights:
Fannie Mae’s 2017 Home Purchase Sentiment Index (HPSI) increased in November by 2.6 points to 87.8. The HPSI is up 6.6 points compared with the same time last year.
- The net share of Americans who say it is a good time to buy a home increased seven percentage points to 29%, erasing last month’s six percentage point drop
- The net percentage of those who say it is a good time to sell a home increased by four percentage points to 34%
- The net share of Americans who say that home prices will go up rose six percentage points to 46% in November
- The net share of those who say mortgage rates will go down over the next 12 months fell five percentage point to -51%
- The net share of Americans who say they are not concerned about losing their job rose by four percentage points to 74%
- The net share of Americans who say their household income is significantly higher than it was 12 months ago remained unchanged at 14%