Fannie Mae keeps track of the Home Purchase Sentiment Index, or HPSI, each month. From July to August, the change in total value was negligible, from 75.8 to to 75.7, though it’s down 1.8 year-over-year. But the HPSI is a composite of six different categories, and none of them were without change. Three categories increased and three decreased.
Notable changes were an increase in those who believe it’s a good time to buy and a decrease in those who expect home prices to increase over the next 12 months. While the number who think it’s a good time to buy is still not a majority, it’s approaching a third at 32%. In July, only a bit less than half — 46% of respondents — expected home prices to increase. In August, this dropped to 40%. Only 24% of respondents believe home prices will decrease.
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