WASHINGTON—Fannie Mae's Home Purchase Sentiment Index (HPSI) increased 1.2 points to 82.7 in February, while the net share of consumers who think home prices will go up over the next 12 months posted the biggest drop among HPSI components, declining four percentage points and continuing the downward trend from January.
The largest HPSI component increases on net in February were consumers' confidence about not losing their job and the share of those saying now is a good time to buy a home, which both rose four percentage points.
"Our February results show the most modest consumer home price expectations since late 2012," said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a released statement. "For consumers who think it's a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn't reap the benefits of selling a home at high prices to buy another one."
Fannie Mae's February 2016 HPSI rose 1.2 percentage points in February to 82.7. More consumers reported household income growth in February compared to January, and fewer consumers expect mortgage rates to go up over the next 12 months. Overall, the HPSI is up 1.2 points since this time last year.
- The net share of respondents who say that it is a good time to buy a house rose four percentage points to 35%. Rebounding from last month's all-time survey low, 63% of respondents now say it is a good time to buy a house.
- The net percentage of those who say it is a good time to sell a house fell two percentage points to 7%.
- The net share of respondents who say that home prices will go up fell four percentage points to 33%.
- The net share of those who say mortgage interest rates will go down rose two percentage points to negative 50% this month, as fewer consumers say mortgage rates will go up.
- The net share of respondents who say they are not concerned with losing their job rose four percentage points to 75%. A new all-time survey high was reached as 87% of respondents say they are not concerned about losing their job.
- The net share of respondents who say their household income is significantly higher than it was 12 months ago rose three percentage points to 15%.