Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 2.4 points to 83.2 in December, capping off its strongest year thus far, as Americans’ household income prospects bounced back to levels of three months ago. Coupled with an improved financial outlook, more consumers said they believe now is a good time to sell a home – climbing 4 percentage points on net – although the share who believe now is a good time to buy remained flat in December.
Highlights from the Index include:
• The net share of respondents who say that it is a good time to buy a house remained flat at 35 percent.
• The net percentage of respondents who say it is a good time to sell a house rose after falling for two months in a row – rising 4 percentage points to 8 percent in December.
• The net share of respondents who say that home prices will go up rose 2 percentage points to 40 percent.
• The net share of those who say mortgage interest rates will go down continued to decrease, dropping 4 percentage points to negative 52 percent.