Consumer home purchase sentiment edged up for the second consecutive month in December but remained only slightly above its all-time low set in October, according to Fannie Mae.
The Home Purchase Sentiment Index (HPSI) rose to a reading of 61 in December, up 3.7 points month over month and down 13.2 points compared to the same time a year ago. Three of the six HPSI components improved, including those associated with homebuying conditions, mortgage rate outlook, and job security.
“In December, the HPSI inched upward slightly, as consumers reported increased expectations that mortgage rates and home prices may decrease over the next year – perhaps reflecting recently observed declines in mortgage rates and average home prices,” said Fannie Mae chief economist Doug Duncan. “However, the HPSI remains very low by historical standards, particularly the ‘good time to buy’ component, and respondents continue to cite high home prices and unfavorable mortgage rates as the primary reasons for their pessimism.”
Source: mpamag.com