The Home Purchase Sentiment Index (HPSI) rose 1.2 points over the month to a level of 82.7 in February. Strengthening labor market conditions and low mortgage rates continue to boost homebuyer optimism.
Employment Gains Boost Confidence
Fannie Mae’s HPSI picked up in February to a level of 82.7 and the series is now above its six month average of 82.5.
Homebuyer confidence has been bolstered by the gradual improvement in the labor market. Consumers reported an all-time high for job security in February, with 87 percent of respondents reporting that they are not concerned about losing their job.
Homebuyer Sentiment Improves Gradually
On an annual basis, the HPSI is up 1.2 points year to year, with modest improvement seen in the employment (+6) and income (+3) components. The clear standout has been the net percent of respondents who reported it is a “good time to sell,” which rose a staggering 18 percentage points over the year. This bodes well for the existing home market, as the historically low level of inventories has been a persistent challenge for sales growth.
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