Each month, Fannie Mae surveys Americans and asks for their opinions on the housing market and economy. Participants weigh in on everything from mortgage rates and home prices to whether it’s a good time to buy or sell a home and how they feel about their job and financial situation. The resulting Home Purchase Sentiment Index then distills that information into a single number that reflects how Americans view housing market conditions. In December, the index fell 1.9 points to 73.1, which is lower than the previous month but substantially higher than it was at the same time last year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says the gains are due to optimism about mortgage rates. “Even though the HPSI fell to end the year, consumer sentiment toward the housing market finished 2024 substantially above year-ago levels, attributable in part to respondents’ ongoing expectations that mortgage rates will decline,” Palim said.” According to the results, 42 percent of participants said they believe rates will fall over the next 12 months, while 25 percent said they expect higher rates and 32 percent expect rates to stay the same. (source)
