Fannie Mae: Home Purchase Sentiment Edges Up

(Image courtesy of Masood Aslami/pexels.com)

Fannie Mae released data for the May 2025 Home Purchase Sentiment Index, reporting that month-over-month, the HPSI increased 4.3 points to 73.5.

Year-over-year it’s also up 4.1 points.

Twenty-six percent of respondents think it’s a good time to buy a house, with 74% reporting they think it’s a bad time. But, 61% think it’s a good time to be a seller, with 38% saying they think it’s a bad time.

Just under half–45%–think home prices will go up over the next year, and 21% believe they will go down. Respondents, on average, believe home prices will increase 3.1% over the next year.

As for rates, 29% think mortgage rates will go down over the next 12 months, with 32% reporting they think they’ll go up.

The majority of respondents, at 76%, aren’t worried about job loss, but 22% are concerned. And, 19% report their household income has gone up significantly over the past year. One-tenth say it’s significantly lower.

Looking at rentals, consumers anticipate rental prices will increase 6.6% on average over the next year.

The number of respondents who said they would buy a home if they needed to move was at 68%, up 3 percentage points from last month. But, 55% said that getting a mortgage would be difficult, up 1 percentage point.