Homebuying Sentiment Hits Another Low; Tight Inventory Could Actually Help Affordability (Eventually)

Homebuying Sentiment Hits Another Low; Tight Inventory Could Actually Help Affordability (Eventually)

While consumers' comfort with their financial situation appears to be improving, their pessimism about homebuying is also growing. Fannie Mae says while its Home Purchase Sentiment Index (HPSI) did tick up by 1.0 point in May to 80.0, the component reflecting responses about whether it is a good time to buy fell to a second consecutive all-time low. The HPSI reflects answers to some questions from the monthly National Housing Survey including the good time to buy as well as a comparable query about selling. Only 35 percent of respondents said it is a good time to buy in May, down from 53 percent in March. The net positive answers (yes responses minus no responses) to the question fell to a negative 20 percent, down 34 points year-over-year. Positive answers to the question about selling rose