The confidence consumers have in housing is slightly wilting, as homebuyers are immobilized by sparse supply, according to the Fannie Mae Home Purchase Sentiment Index® (HPSI) for June. At 90.7, the Index flattened 1.6 percentage points month-over-month, but remains up by 2.4 percentage points year-over-year.
Twenty-eight percent of homebuyers are optimistic about purchasing—no change from May—and 47 percent of homeowners are optimistic about selling, up 1 percentage point to a record, the HPSI shows.
“After several years of steadily climbing, HPSI’s slowing upward trend suggests the Index may be reaching a plateau,” says Doug Duncan, chief economist and senior vice president at Fannie Mae. “Tight supply and lackluster income growth continue to weigh on housing activity, and consumer expectations for home price growth over the next 12 months have moderated.”
The HPSI is derived from Fannie Mae’s National Housing Survey® (NHS).
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