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Fannie Mae Sentiment Index Plunges to Nine-Year Low
Thursday, May 7, 2020
Fannie Mae's Home Purchase Sentiment Index (HPSI)
plummeted 17.8 points in April. Combined with its 11.7-point loss in March the
Index is at 63.0, its lowest reading since November 2011. Several of its
components are now in net negative territory.
The HPSI is calculated from responses to six questions
from the monthly National Housing Survey (NHS). Five of the components dropped
compared to the previous month, four of them by double digits.
The most dramatic change was in the answers to the
question of whether it is a good time to sell a home. Those who said no rose
from 36 percent in March to 65 percent while positive responses went from 52 to
29 percent. As a result, the net positive share decreased 52 points from March
and 79 points compared to a year earlier. When asked for their reasons for
their responses, the majority of survey participants cited unfavorable economic
conditions
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