Consumers More Upbeat on Buying and Selling Despite Lower Price Expectations; Rates Are NOT At All-Time Lows

Consumers More Upbeat on Buying and Selling Despite Lower Price Expectations; Rates Are NOT At All-Time Lows

Fannie Mae says its Home Purchase Sentiment Index (HPSI) which, before a slight setback in July, had been rebounding strongly from its April COVID-19 related plunge, got back on track last month. The August index, based on responses to six questions in the National Housing Survey (NHS), increased 3.3 points to a 77.5 reading. Five of the six components rose from their July level with consumers reporting a more optimistic view of both homebuying and home-selling conditions, but a slightly more pessimistic view of expected home price growth. The Index remains down 16.3 points year-over-year. "The HPSI rose modestly in August, recovering the ground it lost in July," said Doug Duncan, Senior Vice President and Chief Economist. "The HPSI's recovery was driven by near-record low mortgage rates that