WASHINGTON, April 7, 2021 /PRNewswire/ — The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) elevated in March by 5.2 factors to 81.7. 4 of the HPSI’s six parts elevated month over month, together with the parts associated to homebuying and home-selling situations, family revenue, and residential costs. The mortgage fee outlook part skilled the one decline; and the newest outcomes point out that solely 6% of customers consider that mortgage charges will lower over the following 12 months. Yr over 12 months, the HPSI is up 0.9 points.
“The numerous improve within the HPSI in March displays shopper optimism towards the housing market and bigger financial system as vaccinations proceed to roll out, a 3rd spherical of stimulus checks was distributed, and the spring homebuying season started – maybe with much more depth this 12 months, since 2020’s spring homebuying season was restricted by virus-related lockdowns,” mentioned Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Residence-selling sentiment skilled optimistic momentum throughout most shopper segments – practically reaching pre-pandemic ranges and usually indicative of a powerful vendor’s market. Customers as soon as once more cited excessive house costs and tight stock as major the explanation why it is a good time to promote. Alternatively, whereas the web ‘good time to purchase’ part elevated month over month, it has not recovered to pre-pandemic ranges, because the homebuying expertise continues to show troublesome for lots of the identical causes, particularly excessive costs and a scarcity of provide.”
Fannie Mae’s Financial and Strategic Analysis Group just lately printed new analysis on the evolution of customers’ home-purchase attitudes and behaviors through the pandemic, together with a Perspectives blog on customers’ perceptions of homeownership as an funding, in addition to a whitepaper on homebuyers’ pandemic-driven motion away from extremely dense metropolis facilities.
Residence Buy Sentiment Index – Element Highlights
Fannie Mae’s Residence Buy Sentiment Index (HPSI) elevated in March by 5.2 factors to 81.7. The HPSI is up 0.9 factors in comparison with the identical time final 12 months. Learn the full research report for added info.
- Good/Unhealthy Time to Purchase: The proportion of respondents who say it’s a good time to purchase a house elevated from 48% to 53%, whereas the proportion who say it’s a unhealthy time to purchase decreased from 43% to 40%. In consequence, the web share of those that say it’s a good time to purchase elevated Eight share factors month over month.
- Good/Unhealthy Time to Promote: The proportion of respondents who say it’s a good time to promote a house elevated from 55% to 61%, whereas the proportion who say it is a unhealthy time to promote decreased from 35% to 28%. In consequence, the web share of those that say it’s a good time to promote elevated 13 share factors month over month.
- Residence Worth Expectations: The proportion of respondents who say house costs will go up within the subsequent 12 months elevated from 47% to 50%, whereas the proportion who say house costs will go down decreased from 18% to 14%. The share who suppose house costs will keep the identical remained unchanged at 29%. In consequence, the web share of People who say house costs will go up elevated 7 share factors month over month.
- Mortgage Fee Expectations: The proportion of respondents who say mortgage charges will go down within the subsequent 12 months decreased from 8% to six%, whereas the proportion who count on mortgage charges to go up elevated from 47% to 54%. The share who suppose mortgage charges will keep the identical decreased from 38% to 34%. In consequence, the web share of People who say mortgage charges will go down over the following 12 months decreased 9 share factors month over month.
- Job Issues: The proportion of respondents who say they aren’t involved about dropping their job within the subsequent 12 months remained unchanged at 82%, whereas the proportion who say they’re involved additionally remained unchanged at 17%. In consequence, the web share of People who say they aren’t involved about dropping their job remained unchanged month over month.
- Family Revenue: The proportion of respondents who say their family revenue is considerably increased than it was 12 months in the past elevated from 17% to 25%, whereas the proportion who say their family revenue is considerably decrease decreased from 19% to 15%. The proportion who say their family revenue is about the identical decreased from 61% to 56%. In consequence, the web share of those that say their family revenue is considerably increased than it was 12 months in the past elevated 12 share factors month over month.
About Fannie Mae’s Residence Buy Sentiment Index
The Residence Buy Sentiment Index (HPSI) distills details about customers’ house buy sentiment from Fannie Mae’s Nationwide Housing Survey® (NHS) right into a single quantity. The HPSI displays customers’ present views and forward-looking expectations of housing market situations and enhances current information sources to tell housing-related evaluation and resolution making. The HPSI is constructed from solutions to 6 NHS questions that solicit customers’ evaluations of housing market situations and tackle matters which are associated to their house buy choices. The questions ask customers whether or not they suppose that it’s a good or unhealthy time to purchase or to promote a home, what path they count on house costs and mortgage rates of interest to maneuver, how involved they’re about dropping their jobs, and whether or not their incomes are increased than they have been a 12 months earlier.
About Fannie Mae’s Nationwide Housing Survey
Essentially the most detailed shopper attitudinal survey of its type, Fannie Mae’s National Housing Survey (NHS) polled roughly 1,000 respondents by way of reside phone interview to evaluate their attitudes towards proudly owning and renting a house, house and rental worth modifications, homeownership misery, the financial system, family funds, and total shopper confidence. Householders and renters are requested greater than 100 questions used to trace attitudinal shifts, six of that are used to assemble the HPSI (findings are in contrast with the identical survey performed month-to-month starting June 2010). As cell telephones have develop into widespread and lots of households not have landline telephones, the NHS contacts 70 p.c of respondents by way of their cell telephones (as of January 2018). For extra info, please see the Technical Notes. Fannie Mae conducts this survey and shares month-to-month and quarterly outcomes in order that we might assist trade companions and market individuals goal our collective efforts to help the housing market. The March 2021 Nationwide Housing Survey was performed between March 1, 2021 and March 27, 2021. Many of the information assortment occurred through the first two weeks of this era. Interviews have been performed by PSB, in coordination with Fannie Mae.
Detailed HPSI & NHS Findings
For detailed findings from the March 2021 Residence Buy Sentiment Index and Nationwide Housing Survey, in addition to a quick HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions requested of respondents related to every month-to-month indicator, please go to the Surveys page on fanniemae.com. Additionally accessible on the location are in-depth special topic studies, which offer an in depth evaluation of mixed information outcomes from three month-to-month research of NHS outcomes.
To obtain e-mail updates with different housing market analysis from Fannie Mae’s Financial & Strategic Analysis Group, please click here.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and inexpensive rental housing attainable for thousands and thousands of individuals in America. We companion with lenders to create housing alternatives for households throughout the nation. We’re driving optimistic modifications in housing finance to make the house shopping for course of simpler, whereas lowering prices and threat. To study extra, go to:
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog
Fannie Mae Newsroom
Picture of Fannie Mae
Fannie Mae Useful resource Middle
Opinions, analyses, estimates, forecasts, and different views of Fannie Mae’s Financial & Strategic Analysis (ESR) Group included in these supplies shouldn’t be construed as indicating Fannie Mae’s enterprise prospects or anticipated outcomes, are based mostly on numerous assumptions, and are topic to vary with out discover. How this info impacts Fannie Mae will rely upon many elements. Though the ESR Group bases its opinions, analyses, estimates, forecasts, and different views on info it considers dependable, it doesn’t assure that the knowledge supplied in these supplies is correct, present, or appropriate for any specific objective. Modifications within the assumptions or the knowledge underlying these views might produce materially totally different outcomes. The analyses, opinions, estimates, forecasts, and different views printed by the ESR Group symbolize the views of that group as of the date indicated and don’t essentially symbolize the views of Fannie Mae or its administration.
SOURCE Fannie Mae