HPSI Rebounds in January
Four of Six Components Rise
Fannie Mae's Home Purchase Sentiment Index (HPSI) snapped a five-month losing streak with a two-percentage point gain in January, rising to 82.7.
The HPSI is compiled from the monthly National Housing Survey, and 1,000 people were asked about their attitudes toward owning and renting a home, and home and rental price changes, among other questions. The January survey was conducted Jan. 1-21. Homeowners and renters were asked more than 100 questions, and six of those are used to construct each HPSI.
Four of the HPSI's six components rose in January. The net share of respondents who believe home prices will go up in the next 12 months increased by 7 percentage points; the net share of respondents who said their household income is significantly higher now than 12 months ago climbed by 5 percentage points; the net percentage of those who said now it is a good time to sell a house went up 2 percentage points; and the net share of respondents who said they are not concerned about losing their jobs expanded by one percentage point.
The net share of those who said mortgage rates would go down over the next 12 months remained constant.
On the downside, the net share of those who said now it is a good time to buy a house dropped 3 percentage points.