RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Housing Sentiment Dips as Affordability Constraints Worsen

Home Agents
By Jordan Grice
May 13, 2022
Reading Time: 3 mins read
Housing Sentiment Dips as Affordability Constraints Worsen

The runup on home prices and mortgage rates continues to weigh on the minds of aspiring homebuyers as buyer sentiment took another dip in the last month, according to recent data from Fannie Mae.

The organization’s Home Purchase Sentiment Index (HPSI) decreased by 4.7 points to 68.5 in April, its lowest level since May 2020, as surveyed consumers expressed heightened concerns about housing affordability and rising mortgage rates.

Overall, all six of the index’s components dropped month over month as 76% of consumers signaled that they believe it’s a bad time to buy a home—a survey-high and a three-percentage point increase from March. Seventy-three percent of respondents also expect mortgage rates to continue climbing over the next 12 months. Year-over-year, the full index is down 10.5 points.

“In April, the HPSI fell to its lowest level since the first few months of the pandemic, as consumers continue to report difficult homebuying conditions amid the budget-tightening constraints of inflation, higher mortgage rates and high home price appreciation,” said Doug Duncan, Fannie Mae SVP and chief economist. “The current lack of entry-level supply and the rapid uptick in mortgage rates appear to be adversely impacting potential first-time homebuyers in particular, evidenced by the larger share of younger respondents—aged 18 to 34—reporting that it’s a ‘bad time to buy a home.’”

“Additionally, consumer perception regarding the ease of getting a mortgage also decreased across nearly all surveyed segments this month, suggesting to us that the benefit of the recent past’s historically low mortgage rate environment appears to have diminished, and affordability is poised to become an even greater constraint going forward,” Duncan continued. “This sentiment is consistent with our forecast of decelerating home sales through the rest of 2022 and into 2023.”

Home Purchase Sentiment Index—Component Highlights

Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased in April by 4.7 points to 68.5. The HPSI is down 10.5 points compared to the same time last year.

  • Good/bad time to buy: The percentage of respondents who said it is a good time to buy a home decreased from 24% to 19%, while the percentage who said it is a bad time to buy increased from 73% to 76%. As a result, the net share of those who said it is a good time to buy decreased eight percentage points month over month.
  • Good/bad time to sell: The percentage of respondents who said it is a good time to sell a home decreased from 74% to 72%, while the percentage who said it’s a bad time to sell remained unchanged at 21%. As a result, the net share of those who said it is a good time to sell decreased two percentage points month over month.
  • Home price expectations: The percentage of respondents who said home prices will go up in the next 12 months decreased from 48% to 44%, while the percentage who said home prices will go down increased from 20% to 25%. The share who think home prices will stay the same decreased from 28% to 26%. As a result, the net share of Americans who said home prices will go up decreased nine percentage points month over month.
  • Mortgage rate expectations: The percentage of respondents who said mortgage rates will go down in the next 12 months increased from 4% to 5%, while the percentage who expect mortgage rates to go up increased from 69% to 73%. The share who think mortgage rates will stay the same decreased from 23% to 18%. As a result, the net share of Americans who said mortgage rates will go down over the next 12 months decreased three percentage points month over month.
  • Job loss concern: The percentage of respondents who said they are not concerned about losing their job in the next 12 months decreased from 86% to 84%, while the percentage who said they are concerned remained unchanged at 11%. As a result, the net share of Americans who said they are not concerned about losing their job decreased two percentage points month over month.
  • Household income: The percentage of respondents who said their household income is significantly higher than it was 12 months ago decreased from 29% to 26%, while the percentage who said their household income is significantly lower increased from 13% to 14%. The percentage who said their household income is about the same increased from 53% to 56%. As a result, the net share of those who said their household income is significantly higher than it was 12 months ago decreased four percentage points month over month.

Read the full research report for additional information.

Tags: Doug DuncanFannie MaeHome Purchase Sentiment IndexHPSIMortgage RatesU.S. Household IncomeU.S. Jobs
ShareTweetShare

Jordan Grice

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news to jgrice@rismedia.com.

Related Posts

Becoming the Broker of Choice
Agents

Becoming the Broker of Choice

May 26, 2022
3 Key Factors for Identifying the Right Brokerage
Agents

3 Key Factors for Identifying the Right Brokerage

May 26, 2022
Window to the Law: How a .realtor Web Address Can Set You Apart
Agents

Window to the Law: How a .realtor Web Address Can Set You Apart

May 26, 2022
HUNT Real Estate Expands CNY Market Share With Acquisition of Procopio Real Estate
Agents

HUNT Real Estate Expands CNY Market Share With Acquisition of Procopio Real Estate

May 26, 2022
Reformers See Opening to Address Racist Appraisals
Agents

Reformers See Opening to Address Racist Appraisals

May 25, 2022
Buzzing 2021 Market Helps Real Estate Companies Join the Fortune 500
Agents

Buzzing 2021 Market Helps Real Estate Companies Join the Fortune 500

May 25, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Why You Need a Real Estate CRM

Discover how a real estate client relationship management tool can get you organized and maximize your lead generation, so you... Learn more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Becoming the Broker of Choice
  • 3 Key Factors for Identifying the Right Brokerage
  • Window to the Law: How a .realtor Web Address Can Set You Apart

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

RISMEDIA PREMIER CONTENT

INSIGHTS THAT ELEVATE YOUR VALUE

logo-rismedia-white
x