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Consumers Remain Confident About Job Prospects
Thursday, October 8, 2020
Fannie Mae's Home Purchase Sentiment Index (HPSI)
continued to rebound from its spring slide, rising for the second straight
month. The HPSI, based on a subset of six questions from the company's monthly
National Housing Survey, shows increased optimism about home selling conditions,
home price growth and the labor market but that optimism didn't carry forward
in September when it came to homebuying conditions and mortgage rate
expectations. The Index increased by 3.5 points in September, to
81.0. However, it is 10.5 points lower than in September 2019.Despite the huge layoffs and ongoing
unemployment insurance claims, most consumers feel secure about their
employment prospects. Eighty-three percent of respondents said they were not concerned
about losing their job, a 5-point increase and the percent who were concerned
dropped 6 points to 16 percent. This left the net up 11 points at 67 percent,
only 2 points lower than in the pre-pandemic era a year ago.
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