Tag Archives: Home Purchase Sentiment Index (HPSI)

The MBA reports that lenders nationwide marginally increased their loan offerings to meet the changing needs of borrowers in the face of ongoing mortgage rates above the 7% mark.

“Mortgage rates once again breached the 7% mark in August, hitting a 22-year high and doing no favors for consumer sentiment,” said Doug Duncan, Fannie Mae SVP and Chief Economist.

The Home Purchase Sentiment Index published monthly by Fannie Mae reported yet another increase to its highest level since May 2022, mainly due to greater consumer optimism about mortgage rates.

“Unsurprisingly, consumers also expressed apprehension about the direction of home prices,” said Mark Palim, Fannie Mae VP and Deputy Chief Economist.

After three weeks of consecutive declines, mortgage application volume took a sudden turn upward this week, despite mortgage rates nearing the 7% mark.

“January’s HPSI results showed that consumer sentiment toward the housing market remains subdued by historical standards,” said Doug Duncan, Fannie Mae’s SVP and Chief Economist.

Fannie Mae’s latest Home Purchase Sentiment Index reverses course, picking up from the previous month’s lows.

After slight relief in mortgage rates last week, the Fed’s sixth rate hike of the year finds the housing market adjusting to rapidly tightening monetary policies, as rates returned north of the 7% mark.

As mortgage rates remain in the 7% range, app volume fell slightly this week, with the refinance share of volume hitting a low last seen in August of 2000.

"The HPSI reached an all-time survey low this month, in line with expectations that the housing market will continue to cool in the months ahead," said Doug Duncan, Fannie Mae SVP and Chief Economist.