The Fannie Mae Home Purchase Sentiment Index (HPSI) suggests that the housing market will soften this year.
26% of respondents said it is a good time to buy a home, town from 29%. 66% percent of respondents say it is a bad time to buy, up from 64%.
76% of respondents said it is a good time to sell a home, up from 74%. 17% said it is a bad time to sell, down from 21%.
Fannie Mae Chief Economist Doug Duncan stated that the housing market may begin to soften in the coming year since the index has drifted slightly downward since March 2021.
“Over the past year, low mortgage rates plus government stimulus programs helped increase mortgage demand, but the bidding-up of homes increased prices to record levels, making affordability a greater constraint for both first-time and move-up homebuyers.”