Home >> Daily Dose >> Are Rising Home Prices Impacting Purchase Sentiment?
Print This Post Print This Post

Are Rising Home Prices Impacting Purchase Sentiment?

homes

Fannie Mae reported Friday that its Home Purchase Sentiment Index (HPSI) increased 3.7 points to 92 in May, just missing the survey high set in May 2018.

The biggest reported increase was 13% in the “Good Time to Buy” component, as 27% of those surveyed felt it is a good time to buy a home. Fannie Mae states that most responders expecting home prices to go up and mortgage rates to continue falling over the next year year grew by 5% and 3%, respectively.

Freddie Mac announced that the average rate for a 30-year fixed rate mortgage fell to 3.82% on June 6—its lowest level in nearly two years.

“While consumers’ more favorable mortgage rate outlook suggests continued support for housing affordability, potential homebuyers still face supply constraints. Additionally, while the survey recently resumed its upward trend, consumers’ sense of income growth and job security have moved lower from the highs established earlier in the year, which, if sustained, could weigh on the housing market in the second half of the year,” said Doug Duncan, SCP and Chief Economist at Fannie Mae.

Overall, the HPSI is down 0.3 points year-over-year. The survey concluded that 43% of respondents feel it is a good time to sell a home, which is a 3% decrease from this time last year.

Responders who said home prices will go up over the next year increased 5% to 41%, and is down 8% year-over-year.  

CoreLogic latest Home Price Index (HPI) reported that national home prices rose 3.6% in April 2019 and are expected to increase 4.7% over the next year.

CoreLogic states that April’s HPI increase was down from the April 2018 gain of 6.6%, but a slight increase from March’s increase of 3.5%, indicating home price increases have flattened out.

Home prices in March also saw an increase of 3.7% year-over-year, according to CoreLogic’s Case-Shiller home price index .

Las Vegas, Phoenix, and Tampa reported the highest year-over-year gains among the 20 cities. In March, Las Vegas led the way with an 8.2% year-over-year price increase, followed by Phoenix with a 6.1% increase, and Tampa with a 5.3% increase.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
x

Check Also

pending home sales

Existing Home Sales Posts Another Increase

For the second-consecutive month home sales rose. One metric, though, was revealed to have increased for the 90th-consecutive month.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.