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Interest Rate Hopes Send Fannie Mae Index Higher

Interest Rate Hopes Send Fannie Mae Index Higher

Even as consumer sentiment about housing remained generally pessimistic, a change in perceptions about the future of mortgage interest rates did a lot to brighten the mood of consumers responding to Fannie Mae’s National Housing Survey (NHS). The company says its Home Purchase Sentiment Index (HPSI) based on that survey rose 2.9 points in December. That month’s reading of 67.2 is the highest for the index since the spring of 2022 and 6.2 points higher than in December 2022.   The increase was largely due to consumers’ expectations that interest rates, already down more than a point from their November levels, would continue to decline over the next 12 months. Thirty-one percent of those responding to the rate prediction question said they expected a decrease, 31 percent said rat
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