The Fannie Mae Home Purchase Sentiment Index increased by 5.6 percentage points in February to a new all-time high of 88.3%. Five of the six components that comprise the index were up, with three hitting record highs, according to a Fannie Mae news release.
The report found the percentage of Americans who felt it was a good time to buy and sell a house rose in February, and fewer consumers were concerned about losing their jobs. The results were based on information gathered from Fannie Mae’s National Housing Survey.
“The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011,” Doug Duncan, senior vice president and chief economist at Fannie Mae, said in the news release. “Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers.”
“However, continued slow supply growth implies continued strong price appreciation and affordability constraints facing millennials and first-time buyers in many markets,” he added in the release.
Highlights of the Fannie Mae report include:
• The net share of Americans who say it is a good time to buy a house rose 11 percentage points to 40%.
• The net percentage of those who say it is a good time to sell increased by 7 percentage points to 22%, reaching a new survey high.
• The net share of Americans who say home prices will go up increased by 3 percentage points in February to 45%.
• The net share of Americans who say they are not concerned about losing their job rose 9 percentage points to a new survey high of 78%.
• The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 4 percentage points to 19% in February, reaching a new survey high.
To read more about the report, click here.