US Consumers Increasingly Sour on Economy, Blame Inflation

Fannie Mae
November 7, 2023
Category: Finance & Economics
Region: United States

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) remained largely flat in October, as consumer frustration toward housing unaffordability and an economy battling inflation continues to depress overall sentiment. Despite improvement in the share of consumers expressing greater job security and improved household income, 78% of respondents believe the economy is on the “wrong track,” up 7 percentage points from last month, with the vast majority once again pointing to inflation as the top reason for that belief. This month, a survey-record 85% of consumers indicated that it’s a “bad time” to buy a home, with most respondents citing high home prices and high mortgage rates as the primary reasons. By comparison, only 37% believe it’s a “bad time” to sell a home. Overall, the full index is up 8.2 points from its all-time low last year.

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