Fannie Mae Sentiment Index Up Two Points in July

(Image courtesy of Phil Evenden/pexels.com)

Fannie Mae released its latest Home Price Sentiment Index, which increased to 71.8 in July.

That’s up two points from June. It still trails recent high points of 73.5 in May and 75 in November 2024, but is well above the lowest point of the last few years–56.7 in October 2022.

The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.

Currently 23% think it’s a good time to buy a house, with 77% saying it’s a bad time. In June, 28% believed it was a good time to buy.

Sixty percent say it’s a good time to sell a house, and 39% say it’s a bad time–flat from June.

Looking forward over the next year, 46% predict home prices will go up, and 18% predict they’ll go down. They believe home prices will increase by 2.6% over the next year.

Meanwhile, 28% predict mortgage rates will go up over the next year and 32% predict they’ll go up.

The majority–75%–are not concerned about any job loss over the next year, while 24% are. And, 18% report their household income has been significantly higher over the past year, while 10% say it’s been significantly lower.

Consumers–at 64%–expect home rental prices to increase in the next year. They believe they will do so by 6% on average.

The share of respondents who said they would buy a home if they were going to move was at 66%, up slightly from June.

And, the share of respondents who say getting a mortgage would be difficult narrowly increased, to 54%.