Homebuyers and sellers share a similar outlook on the housing market as elevated borrowing costs and house prices prolong a worsening affordability crisis
March 7, 2023
2 min read
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After three consecutive monthly increases, the Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index (HPSI) fell 3.6 points in February to 58.0, nearing the all-time low level recorded in October 2022, Fannie Mae reports. Roughly 78% of respondents say that now is a bad time to buy a home, while 44% say now is a bad time to sell.
The percentage of consumers who expect home prices to rise during the next 12 months decreased from 32% to 30%, while the share of respondents who think home prices will stay the same increased in February.
“The HPSI declined this month and is now just slightly above the survey low set late last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “The decline was partly driven by a substantial decrease in consumers’ sense of home-selling conditions, with most respondents who indicated it’s a ‘bad time to sell’ citing unfavorable economic conditions and mortgage rates as the primary reasons for that belief. With home-selling sentiment now lower than it was pre-pandemic – and homebuying sentiment remaining near its all-time low – consumers on both sides of the transaction appear to be feeling cautious about the housing market.
