US Consumer Optimism About Mortgage Rates Jumps Significantly

Fannie Mae
January 8, 2024
Category: Finance & Economics
Region: United States

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 2.9 points in December to 67.2, due primarily to a significant jump in the share of consumers expecting mortgage rates to go down over the next 12 months. In December, a survey-high 31% of consumers indicated that they expect mortgage rates to go down, while 31% expect them to go up, and 36% expect rates to remain the same. Although consumer perceptions of homebuying conditions remain overwhelmingly pessimistic, that particular component of the HPSI ticked up slightly month over month, with 17% of consumers now indicating it’s a good time to buy a home, compared to 14% last month, a survey low. Overall, the full index is up 6.2 points year over year. 

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