Fannie Mae conducts a monthly survey on homebuying sentiment, officially known as the Hope Purchase Sentiment Index (HPSI).  It tracks buyer/seller attitudes on whether its a good time to buy/sell in addition to price/rate expectations.  Given the ongoing surge in prices and the recent surge in rates, the latest results hold few surprises. One thing to understand about the HPSI is that it benefits from components that don’t necessarily have a positive impact on the housing market–at least not directly.  For instance, price trends, employment, and income all factor into the headline number.  These components are the only things preventing the HSPI from sending its purest message, but when we look at the “good time to buy” component, the message is clear: Fannie only started collecting this data in 2010, so there’s no telling if the depths of the housing crisis would have seen a more severe imbalance between those who think it’s a good time to buy vs sell.  That doesn’t much matter though.  What matters is that homebuying sentiment is in the toilet–a funny thing to consider for buyers in some geographies where inventory constraints are still leading to multiple offers over asking price. If only homeowners would listen to their own advice and list their homes!  After all, 76% of them say it’s a good time to sell! Maybe they’re waiting to squeeze a few extra dollars of profit out of the deal.  47% of them think prices will continue to rise over 12 months as opposed to 23% who think prices will fall.
Source: Mortgage News Daily