By World Property Journal
The Fannie Mae Home Purchase Sentiment Index (HPSI) increased by 0.4 points in November 2024, reaching 75.0, continuing its recent sharp upward trajectory.
Following last month’s U.S. election, a record percentage of consumers now expect mortgage rates to decline over the next year, while fewer predict rising home prices. Although only 23% of respondents consider it a “good time to buy a home,” this marks a notable improvement from 14% in November 2023, sustaining its upward trend. Meanwhile, the percentage of those viewing it as a “good time to sell” remained unchanged month-over-month but is higher compared to the previous year. Overall, the HPSI has grown by 10.7 points year-over-year.
“Over the past year, we’ve seen a significant improvement in consumer sentiment toward the housing market, primarily driven by increasing optimism about declining mortgage rates and better perceptions of homebuying and selling conditions,” said Mark Palim, Senior Vice President and Chief Economist at Fannie Mae. “This shift builds on a trend that began approximately two and a half years ago after the pandemic-driven surge in home prices. Consumers appear to be gradually adjusting to current market realities. However, high home prices and elevated mortgage rates remain the primary reasons many still see it as a ‘bad time to buy,’ a pattern we expect to persist into the coming year.”
