Fannie Mae’s Home Purchase Sentiment Index (HPSI) saw a slight drop of .05 percentage points to 86.2, according to the National Housing Survey report for May 2017. This drop is due to decreases in three categories being larger on-net than the increases for the remaining three categories. However, the HPSI did see a .09-percent increase from what it was in May 2016.
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” Doug Duncan, Fannie May senior vice president and chief economist, said in the press release. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home.”
Monthly and yearly comparisons are reported below:
Good time to buy hits new low
The net share of Americans who said they believe now is a good time to buy a home fell by eight percentage points to 27 percent — a record low for this category.
Good time to sell at a record high
The amount of survey participants who think now is a good time to sell, on the other hand, reached a record high in May 2017. After a decline back in April 2017 to 26 percent, this number increased by six percentage points to 32 percent in May. According to an article in Realtor.com, this is the highest percentage Fannie May has seen for this category since beginning the survey in 2010.
Rise in home prices
Less Americans believe home prices will increase than April’s net percentage of 45 percent. The net percentage of Americans who believe home prices will rise for May 2017 decreased by five points to 40 percent, according to the report.
Movement in mortgage rate
Though most people still believe mortgage rates will rise, the net share of Americans who believe mortgage rates will decrease in the upcoming year rose compared with the number for April 2017. The number saw a five-percent increase and rose to -52 percent for May 2017.
Job security concerns
A notably high amount of consumers have begun to express concern over losing their jobs recently — in fact, the net share of Americans who believe they are not in danger of losing their jobs decreased by six percentage points in May 2017 to an overall rate of 71 percent. According to the study, the new percentage resembles a trend seen back in March 2017 in which the number was approximately 70 percent.
Following last month’s trend, the net share of Americans who say their household income is significantly higher than it was 12 months ago continues to rise. The net share increased by five percentage points to 18 percent for May 2017.