Friday, September 6, 2019 / by Lauren McGinnis
The goal of this survey is to assess their individual attitudes toward:
- Owning or renting their home
- Home rental price changes
- Homeownership distress
- The current economy
- Household finances
- Overall consumer confidence
The answers that Fannie Mae collects from the survey are then used to help create the Home Purchase Sentiment Index (HPSI). The HPSI takes all of the information gathered and creates a single number to be used. The number then reflects the current consumer views and expectations of the housing market conditions.
For the month of July the survey was conducted between July 1, 2019 and July 23, 2019, with most of the data being collected during the first 2 weeks of that period.
The results of the July 2019 survey are as follows:
- The home purchase sentiment index has increased 2.2 total points to 93.7
- 5 out of the 6 home purchase sentiment index components increased in July
- An 8% point increase in the "confidence about not losing a job" component is driving the index higher than ever
- In the past year the "forward-looking job confidence: and the "mortgage rates will go down" components are up 16% and 24% respectively.
- These two points on the home purchase sentiment index are at an all new survey high
- The net shares of Americans who say that now is a good time to buy a home has increased to 26%, gaining 2% from the same time period last year.
- The net shares of Americans who say the mortgage rates will go down over the next 12 months has increased to -28%, gaining 24% from the same period last year.
- The net share of Americans who say they are not concerned about losing their jobs over the next 12 months has increased to 81%, gaining 16% from the same period last year.