Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey of Americans that asks for their feelings about buying and selling a home, mortgage rates, prices, their financial situation, and job security. In September, the index rose 1.8 points to its highest level in two years. And while the number of respondents who say it’s a good time to buy a home is still low, optimism about mortgage rates has reached a survey high, with 42 percent of respondents saying they expect rates to fall over the next year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says optimism is rising but it has yet to result in boosted home sales. “Increased positivity that mortgage rates will continue to fall has driven the HPSI to a 30-month high, but we’ve yet to see consumers’ newfound rate optimism translate into a meaningful increase in home sales activity,” Palim said. (source)
