Fannie Mae’s Home Purchase Sentiment Index receded from its all-time high set last month, as Americans showed less confidence about buying and selling in October. But the dip may be seasonal, according to Fannie Mae’s chief economist.
The index, which measures consumers’ perceptions on the housing market, showed an 8 percentage point decrease month over month on the net share of respondents who said now is a good time to sell; it decreased 6 percentage points on the net share who said it is a good time to buy.
“The modest decrease in October’s Home Purchase Sentiment Index is driven in large part by decreases in favorable views of the current homebuying and selling climates, a shift we expect at this time of year moving out of the summer homebuying season,” says Doug Duncan, Fannie Mae’s chief economist. “Indicators of broader economic and personal financial sentiment remain relatively steady. Overall, these results are consistent with our view that the housing market will continue its slow, upward grind through 2018.”
Here is a closer look at Fannie Mae’s October Home Purchase Sentiment Index, which is based on responses from 1,000 consumers:
- 22%: The net share of Americans who say it is a good time to buy a home dropped 6 percentage points, which essentially erased most of last month’s 10 percentage point gain.
- 30%: The net percentage of those who say it is a good time to sell fell 8 percentage points.
- 40%: The net share of Americans who believe that home prices will go up.
- 70%: The net share of Americans who say they are not concerned about losing their job dropped by 5 percentage points in October.
- 14%: The net share of Americans who say their household income is significantly higher than it was 12 months ago dropped 1 percentage point in October.
Source: Fannie Mae
