Only 14% of prospective buyers believe it’s a good time to purchase a home
June 10, 2024
Image: Noel / stock.adobe.com
Sentiment among homebuyers is down, with approximately 14% of prospective buyers believing it is a bad time to purchase property.
Sentiment among homebuyers is down. According to recent research from mortgage financing provider Fannie Mae, the Home Purchase Sentiment Index (HPSI) dropped by 2.5 points in May 2024 to 69.4. Currently, consumer attitudes toward homebuying conditions are at a record low, with just 14% of consumers believing it's a good time to buy a home. This is down from 20% last month. Similarly, those who think it's a good time to sell decreased from 67% to 64% month-over-month.
“Consumer sentiment toward housing declined from its recent plateau, as an increasing share of consumers struggle to find the positives in the current housing market,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “While many respondents expressed optimism at the beginning of the year that mortgage rates would decline, that simply hasn’t happened, and current sentiment reflects pent-up frustration with the overall lack of purchase affordability.”
