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May Homebuying Sentiment Shows Signs of Recovery
Tuesday, June 9, 2020
After falling an aggregate of 29.5
points in March and April, Fannie Mae says its Home Purchase Sentiment Index
(HPSI) has begun to recover. The Index rose 4.5 points in May to 67.5 from an
all-time survey low in April. Four of the six index components gained ground. Year
over year, the HPSI is down 24.5 points. Consumers reported a somewhat more
optimistic view of homebuying conditions and, to a lesser extent home-selling
conditions, in their responses to the National Housing Survey upon which the index
is based. Moreover, fewer consumers reported expectations that mortgage rates
will go up over the next 12 months. The percentage of Americans who say it is a good time to buy a home increased
from 48 percent to 52 percent, while the percentage who say it is a bad time to
buy decreased from 46 percent to 39 percent. As a result, the net share of
Americans who say it is a good time to buy increased 11 percentage points to 13
percent.
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