Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey of Americans which asks for their opinions on the housing market, buying and selling a home, prices, mortgage rates, their financial situation and job. According to the most recent release, Americans were feeling slightly more optimistic in January, as the index ticked up 0.3 points from the previous month. The gains included improvement in consumer optimism toward both buying and selling a home, despite an increasing number of respondents who believe home prices and mortgage rates will rise over the next 12 months. Kim Betancourt, vice president of multifamily economics and strategic research, says Americans aren’t expecting too much change. “Consumers seem increasingly pessimistic that housing affordability conditions will improve across the board, as a growing share expects home prices, rent prices, and mortgage rates will all go up,” Betancourt said. Still, survey respondents said they feel secure in their job and report that their household income is higher than it was last year at the same time. (source)
