Despite increasing mortgage rates and economic volatility, the outlook among home buyers and sellers improved on both a monthly and annual basis, according to Fannie Mae's latest housing survey.
The government-sponsored enterprise's monthly Home Purchase Sentiment Index increased to a reading of 73.6 in May, up from 69.2 one month earlier. May's level also rose from 69.1 on a year-over-year basis.
Fannie Mae's HPSI headed higher for the second month in a row after plunging in March to its lowest mark since late 2023 on the heels of President Trump's
May's numbers climbed up in five out of the six components that make up the HPSI, even as lending rates also
Still, the Fannie Mae report's more optimistic take aligns with recent data from Redfin, which showed growing supply driving the
While more consumers in Fannie Mae's survey felt it was a bad time to buy as opposed to a good one, positive purchase sentiment jumped up on a net basis by seven percentage points from April and 24 percentage points when compared to May 2024.
Net selling sentiment finished higher by 6% compared to a month earlier, but decreased by 6% from a year ago.
Meanwhile, views on home prices showed more consumers expect higher housing costs over the next year. The share who expect to see prices rising grew by 3% from April but decreased 1% from a year earlier. Forty-five percent overall said they expect prices to
While 2% more potential buyers and sellers still anticipate mortgage rates to rise rather than fall over the next year, the net share narrowed from a month earlier by seven percentage points, according to Fannie Mae's HPSI.
