Fannie Mae: Housing Confidence Falls, Remains Volatile
MBA NewsLink Staff
The Fannie Mae Home Purchase Sentiment Index fell by 3.7 points in February to 85.8, reversing last month's increase,
Fannie Mae Chief Economist Doug Duncan attributed the decline to decreases in five of the six HPSI components. The net share of respondents who said now is a good time to buy a home decreased 5 percentage points compared to January. The net share who reported that now is a good time to sell a home decreased 2 percentage points. The net share who said home prices will go up in the next 12 months decreased 7 percentage points in February, while the net share of consumers who said mortgage rates will go down over the next 12 months also decreased 7 percentage points. Americans expressed a weakened sense of job security, with the net share who say they are not concerned about losing their job decreasing 2 percentage points. Finally, the net share reporting that their income is significantly higher than it was 12 months ago increased 1 percentage point.
"Volatility in consumer housing sentiment continued into February, with the new tax law beginning to impact respondents' take-home pay and the stock market creating negative headlines due to early-month turbulence," Duncan said. "Additionally, consumers' expectations for higher mortgage rates suggest that consumers expect the Fed to hike rates a few more times in 2018. We will continue to track how consumer housing attitudes trend in the coming months as these various market forces play out."