Despite this, most believe high home prices and mortgage rates will continue to be a sore spot in the housing market for the foreseeable future
Feb. 10, 2025
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Consumer sentiment in the housing market has improved for the first time since July.
For the first time in months, consumer sentiment in the housing market improved. In January, Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 0.3 points to 73.2. Optimism among homebuyers and home sellers drove the increase. However, most consumers still don’t believe it's the best time to buy a home. Just 22% of respondents say it's a good time to buy, while 78% say it isn’t. At the same time, 63% say it is a good time to sell, while 36% say it's a bad time to sell. Additionally, most consumers believe home prices and mortgage rates will continue to rise over the course of the year.
The percentage of respondents who say home prices will go up in the next 12 months increased from 38% to 43%, while the percentage who say home prices will go down decreased from 27% to 22%. The share who think home prices will stay the same decreased from 35% to 34%. As a result, the net share of those who say home prices will go up in the next 12 months increased 9 percentage points month over month to 20%.Read more
