Confidence in housing made a near-record return in November in the Fannie Mae Home Purchase Sentiment Index® (HPSI), derived from Fannie's National Housing Survey® (NHS). The HPSI overall posted 87.8 in November, 2.6 percentage points higher than the month prior. The Index hit all-time highs in February of this year, and again in June and September.
"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,” says Doug Duncan, chief economist and senior vice president at Fannie Mae. "These results are consistent with our expectation that the housing market will continue its modest expansion going forward."
The share of homebuyers surveyed for the Index who believe now is a good time to buy rose seven percentage points to 29 percent, while the share of sellers who believe now is a good time to sell rose four percentage points to 34 percent. The share of those surveyed who believe home prices will go up rose six percentage points to 46 percent.
Confidence could be impacted, however, by tax reform. Both the House and Senate bills, currently in conference, contain homeownership provisions.
"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," Duncan says.
Source: Fannie Mae