Last week, Fannie Mae said its Home Purchase Sentiment Index (HPSI) increased by 0.4 points to 66. The lack of inventory and poor affordability has kept consumer confidence in the housing market low. Though a majority of the index's six components saw little to no MoM change, homebuying conditions recorded a slight improvement in June compared to May. - However, many consumers still believe this is a bad time to buy a home, a sentiment they have echoed since mid-2021.
- Fannie Mae believes home sales will deteriorate in the second half of this year owing to affordability constraints and listings shortage.
- Fannie Mae's senior vice president and chief economist, Doug Duncan, said fewer consumers believe home prices would decrease over the next 12 months and have adapted to the idea of higher interest rates.
|
