Survey finds most responders expect home prices to go up and rates to continue falling.

Fannie Mae reported that its Home Purchase Sentiment Index (HPSI) increased 3.7 points to 92 last month, 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 rates to continue falling over the next year grew by 5% and 3%, respectively. “While consumers’ more favorable interest rate outlook suggests continued support for housing affordability, potential homebuyers still face supply constraints,” 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.

Source: MReport