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Housing Attitudes Take Turn For The Worse
Monday, February 8, 2016
Affordability is becoming an issue based on more than just rising
interest rates and rising home prices according to the latest Home Purchase
Sentiment Index (HPSI) from Fannie Mae.
That index dipped by 1.7 points from December to January, resulting in a
reading of 81.5. Those results, the
company said, reflected in part housing affordability constraints based on
wages.
The
HPSI distills answers to six critical questions from the monthly National Housing
Survey into a single number. The survey
is conducted by Fannie Mae among a sample of 1,000 consumers, both homeowners
and renters and is intended to gather their
current views and forward-looking expectations of housing market conditions and
address topics that are related to their home purchase decisions. The questions
used to construct the index are those questions consumers as to whether they
think that it is a good or bad time to buy or to sell a house, what direction
they expect home prices and mortgage interest rates to move, how concerned they
are about losing their jobs, and whether their incomes are higher than they
were a year earlier.
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