The Fannie Mae Home Purchase Sentiment Index (HPSI) increased 5.6 percentage points in February to 88.3, a new all-time high. Five of the six components that comprise the HPSI were up, and three hit record highs.The components of this index measure the overall sentiment and confidence of Americans in residential housing market nationwide. Although local markets may vary, HPSI is a good indicator of the housing market.
Highlights from the HPSI include:
- The net share of Americans who say it is a good time to buy a house rose 11 percentage points to 40 percent, rebounding strongly from last month’s survey low.
- The net percentage of those who say it is a good time to sell increased 7 percentage points to 22 percent, reaching a new survey high.
- The net share of Americans who say that home prices will go up increased 3 percentage points in February to 45 percent.
- The net share of those who say mortgage rates will go down over the next 12 months remained constant for the third consecutive month at -55 percent.