Fannie Mae HPSI remains above last year’s June data.

Mounting concerns over supply and affordability are driving down consumers' home purchase decisions, according to the latest Fannie Mae Home Purchase Sentiment Index (HPSI). The index dropped 0.5 points in June after reaching its survey high of 91.5 in May, the data indicated. This, despite an eight-percentage-point spike in consumer expectation of lower mortgage rates. “Growing expectations that mortgage rates will remain steady suggest improved stability for housing affordability and helped keep the HPSI relatively flat this month, despite modest declines in other components,” said Doug Duncan, SVP and Chief Economist at Fannie Mae. The HPSI for June indicated a four-percentage-point drop to 23% in consumer sentiment on "Good Time to Buy." Despite these dips, the overall HPSI remained slightly above (0.8 points) last year's June data. The net share of those who said that now was a good time to sell remained unchanged at 43%, though this was four-percentage-points down compared to last year. Consumer sentiment relating to home prices was also down eight-percentage-points compared to last year and decreased three-percentage-points month-over-month to 38%. 

Source: MReport