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Homebuyer Sentiment Takes a Nosedive in March
Wednesday, April 8, 2020
American's attitudes regarding buying and selling
homes and about their own financial outlook made an abrupt U-turn last month
and Fannie Mae's Home Purchase Sentiment Index (HPSI) wiped out more than three
years of gains. The index, a distillation of responses to six questions from
the monthly National Housing Survey (NHS) lost 11.7 points, falling to 80.8 in
March. Five of the six index components declined both from
February and compared to March 2019, with four falling from the earlier surveys
by double digits. This sent the HPSI falling to its lowest reading since
December 2016 and down 9.0 points since March 2019. One of the most resilient components of the index has
been the question regarding job security. Respondents who say they are not
concerned about losing their job has consistently stayed in the upper 80
percent range for several years. In March it dropped to 77 percent and net
positive responses plummeted 18 percentage points to 54 percent.
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