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Housing Sentiment Up 3.3 Points in August

Fannie Mae’s Home Purchase Sentiment Index (HPSI) rose to 77.5 last month. Near record-low mortgage rates helped consumers (59%) think it’s a good time to buy a home.

WASHINGTON – Americans believe now is a good time to buy a home, according to the latest Fannie Mae Home Purchase Sentiment Index (HPSI), which rose 3.3 points in August to 77.5.

Fannie Mae Senior Vice President and Chief Economist Doug Duncan says, "The HPSI rose modestly in August, recovering the ground it lost in July. The HPSI's recovery was driven by near-record low mortgage rates that helped restore much of consumers' positivity on whether it is a good time to buy a home, while also improving the good-time-to-sell sentiment."

Roughly 59% of respondents said now is a good time to buy a home, up from 53% in July, and another 48% said now is a good time to sell, up from 45% in July. Most potential buyers saw no benefit in waiting for mortgage rates to go down further, with only 17% expecting that to happen, up slightly from 16% in July.

Approximately 33% of respondents said they expect home prices to rise in the next year, down from 35% in July. Meanwhile, 78% of respondents said they were not concerned about losing their jobs in the next 12 months, compared to 77% who said they were not concerned a year ago.

However, the HPSI was at 93.8 a year ago, underscoring the pandemic's impact on sentiment.

Source: Miami Agent Magazine (09/10/2020) Kennedy, Kerrie

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