Despite overall caution in the housing market, more Americans believe it is a good time to buy a home, with 28% of respondents in Fannie Mae’s June survey saying market conditions favor buyers.
According to Fannie Mae’s latest Home Purchase Sentiment Index (HPSI), the share of consumers reporting it is a good time to buy rose from 26% in May to 28% in June. This is the highest level recorded since February 2022. The improvement came even as the overall HPSI declined by 3.7 points to 69.8, reflecting heightened concerns about job security and affordability challenges.
The survey found that 29% of employed respondents fear losing their job in the next 12 months, marking the second highest reading since 2011. Still, more consumers are considering buying opportunities as home prices stabilize and mortgage rates remain steady.
More Say It’s a Good Time to Buy
The number of people saying it is a good time to sell decreased to 60% in June, one point lower than May and six points under the level reported a year ago. Fannie Mae’s chief economist Doug Duncan noted that while the sentiment toward selling has softened, the modest rise in buying optimism is notable against broader economic uncertainty.
The HPSI measures six components, including perceptions about buying and selling, expected price movements, mortgage rate outlook, job security, and household income. While the index is well below pre-pandemic levels, the gains in perceptions of a good time to buy reflect shifting attitudes among potential buyers adapting to market realities.
Job Concerns Affect Sentiment
Labor market anxiety weighed on the index, with nearly three in ten respondents worried about layoffs. Despite these concerns, household income sentiment stayed steady, suggesting many feel financially able to explore homeownership.
The June results show that even as overall confidence slipped, the perception of a good time to buy improved, signaling early signs of returning optimism in housing.
For further details, visit Fannie Mae’s Economic Research and read the full HPSI release.
Closing:
As the second half of the year unfolds, the growing share of consumers who say it is a good time to buy could influence housing demand, even amid economic headwinds.
