Fannie Mae Home Purchase Sentiment Index July 2019

Fannie Mae recently released the July edition of their Home Purchase Sentiment Index (HPSI).

The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.

Great News! The index reached its highest level since Fannie Mae began their survey.

Five of the six HPSI components increased month over month, with an 8-percentage point increase in the net “Confidence About Not Losing Job” component driving the index higher. On a year-over-year basis, the forward-looking job confidence and “Mortgage Rates Will Go Down” components are up 16 and 24 percentage points, respectively.

Breaking it down, the report revealed the consumers’ confidence across the six components.

1. Is it a good time to buy a home?

  • ⬆️Increased 3 percentage points to 26%.
    This component is up 2 percentage points from the same time last year.

2. Is it a good time sell a home?

  • ⬆️Increased 1 percentage point to 44%.
    This component is up 3 percentage points from the same time last year.

3. Will home prices go up over the next 12 months?

  • ⬇️Decreased 1 percentage points to 37%.
    This component is down 2 percentage points from the same time last year.

4. Will mortgage rates go down over the next 12 months?

  • ⬆️Increased 1 percentage points to -28%.
    This component is up 24 percentage points from the same time last year.

5. Not concerned about losing their job over the next 12 months?

  • ⬆️Increased 8 percentage points to 81%.
    This component is up 16 percentage points from the same time last year.

6. Household income is significantly higher than it was 12 months ago?

  • ⬆️Increased 1 percentage point to 21%.
    This component is unchanged from the same time last year.

Bottom Line

Consumers are feeling good about the real estate market. Since Americans are not worried about their jobs, see mortgage rates near an all-time low, and believe it is a good time to buy, the housing market will remain strong for the rest of the year. We see this is evident in the July 2019 home sales in Western Washington.

SOURCEFannie Mae
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Vinod and Jo are the founders of InBestments.com, a pioneer residential real estate wealth platform that removes the guesswork from real estate, whether you are buying your first home to live in or your 20th investment property to hold as a rental or to flip. InBestments is an ecosystem of lenders, agents, RE investors, home buyers, and homeowners, all working together with a singular goal – to build wealth with smart real estate. InBestments elevates Loan Officers and Agents to the role of Real Estate wealth adviser for life and enables you to provide superior service that your clients can't find anywhere else. Don’t be just another single-transaction loan officer or agent for your client. Build lifetime clients and close multiple deals per client. Never be forgotten. Period. Jo Dixit, is also the owner and Designated Broker of BricksFolios Real Estate Solutions, an investment focused brokerage that provides an unique end-to-end service encompassing Portfolio Planning, Funding Strategy, Asset Selection, Asset Management and Asset Disposal/1031 Exchange. Vinod and Jo's goal is to enable 100,000 families to achieve financial freedom with goals driven, smart real estate investments.