With mortgage rates at multi-year low levels, it's no surprise that buyers are very motivated at the moment.
What's less well known are the actual figures that support the current levels of buyer sentiment.
We can obtain a good insight into this if we look at the Fannie Mae Home Purchase Sentiment Index (HPSI), which tracks consumers’ housing-related attitudes, intentions, and perceptions, by asking six questions from the National Housing Survey® (NHS).
For the past two months, the index has been at the highest levels for over a year. In May the index figure of 92 was the highest since May 2018.
June's figure showed a very slight drop to 91.5 but compares very favorably if we look at where the HPSI has been at over the past year:
July 2018 - 86.5
August 2018 - 88.0
September 2018 - 87.7
October 2018 - 85.7
November 2018 - 86.2
December 2018 - 83.5
January 2019 - 84.7
February 2019 - 84.3
March 2019 - 89.8
April 2019 - 88.3
May 2019 - 92.0
June 2019 - 91.5
What this clearly tells us is that buyers are wisely recognizing the opportunities that have opened up since mortgage rates descended below the psychological barrier of 4% during May.
There's no question that mortgage rates have a profound effect on buyer confidence. When they reached their 2018 high of 4.87% for a 30 year fixed home loan the December HPSI dropped to its lowest level of the year and for some time before then.
It makes so much sense to sell your home when buyers are in an upbeat mood, so don't hesitate to contact us and discuss your best current options.