From Fannie Mae: Housing sentiment increases due to the Mortgage Rate Outlook. the favorable rate environment expected to support increasedrefinance mortgage activity.
WASHINGTON, DC – The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) increased 0.1 points in August to 93.8, another new survey high. Despite five of the six HPSI components remaining flat or decreasing month over month, an increase of 11 percentage points in the net “Mortgage Rates Will Go Down” component drove the index slightly higher. On a year-over-year basis, the forward-looking mortgage rates component is up 35 percentage points.
“Growing expectations that mortgage rates will remain flat or decline are reflected in the HPSI’s latest reading, which is now at a survey high even though other indicators of economic and housing market sentiment are flat to negative,” said Doug Duncan, Senior Vice President and Chief Economist. “Unfortunately, much of the lower interest rate environment can be attributed to global economic uncertainties, which appear to have dampened consumer sentiment regarding the direction of the economy. We do expect housing market activity to remain relatively stable, and the favorable rate environment should continue supporting increased refinance activity.”
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