Consumers More Positive on Housing Market

WASHINGTON — Consumers sentiment about the housing market improved in May with both buyers and sellers more optimistic about the future of mortgage rates, buying conditions and home prices, among other factors.

Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased by 4.3 points to reach 73.5 for May 2025. In the year-over-year comparison, the HPSI increased 4.1 points. Five of the six components that make up the HPSI – buying conditions, mortgage rate outlook, selling conditions, job loss concern and home price outlook – improved in May, Fannie Mae said. The change in household income was the only HPSI component that decreased in May.

According to Fannie Mae’s National Housing Survey:

• 26% of respondents in May said it’s a good time to buy a home, up from 23% in April.
• More than three in five consumers (61%) say it’s a good time to sell, while 38% say it’s a bad time to sell.
• The share of consumers who expect home prices to rise increased slightly to 45%, while the share who expect prices to go down decreased slightly to 21%.
• More consumers in May said they expect mortgage rates to drop in the next 12 months, the first month-over-month gain since the November 2024 high.
• Job confidence among employed consumers is growing, with 54% now saying they aren’t worried about losing their jobs, a 5-point increase since last month.
• 9% of consumers say their household income is significantly higher than a year ago, down 3 points from last month. About 70% say their income is about the same.
• 68% of consumers said they would buy a home if they were going to move, a 3-point increase over last month. Those who say they would rent decreased 4 points to 31%.

Fannie Mae’s National Housing Survey polled a sample of 1,345 household financial decision makers aged 18 and older between May 1st and May 20th, 2025. Most of the data collection occurred during the first two weeks of this period.

Source: Fannie Mae

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