Fannie Mae's Home Purchase Sentiment Index (HPSI) increased by 0.4 points in November, reaching 75.0. This marks a continuation of its sharp upward trend observed over the past year, indicating improving consumer sentiment.
A new record-high share of consumers indicated that they expect mortgage rates to decline over the next 12 months. Despite this optimism, only 23% of respondents believed it was a 'good time to buy a home.'
The sustained increase in the HPSI, particularly driven by expectations of lower mortgage rates, suggests growing consumer confidence in the housing market. This positive sentiment could support future housing demand and Fannie Mae's business volumes, even amidst affordability concerns.
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