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83 83 83 INVESTMENT GOVERNMENT PROPERTY PRESERVATION Journal Follow Us At: @DSNewsDaily FANNIE MAE CONSUMER POLL PREDICTS HOUSING MARKET ACTIVITY SLOWDOWN Optimism about purchasing a home rose for the first time in nine months, according to the latest Fannie Mae Home Purchase Sentiment Index (HPSI), yet buyer outlook remains relatively grim, and homeowners who locked in lower mortgage rates might not be keen to sell. With the month-over-month 0.6 point in- crease in November, to 57.3, sentiment remains just above an all-time low set on last month's index and is significantly lower than its level at this time last year. Year over year, the full index is down 17.4 points. Elevated mortgage rates continue to constrain affordability, analysts say, and 62% of respondents expect mortgage rates to continue rising over the next year, compared to only 10% who expect rates to decline. Fannie Mae SVP and Chief Economist Doug Duncan says his team is "unsurprised" that both consumer homebuying and home-sell- ing sentiment are significantly lower than they were last year, considering mortgage rates have more than doubled and home prices remain elevated. "Following eight months of consecutive declines, the HPSI did tick up slightly in No- vember but is essentially unchanged since hit- ting its all-time low last month," he explained. Consumers' expectations about mortgage rates, Duncan says, "will contribute to a further slowing of home sales in the coming months, as both homebuyers and home-sellers have reason for apprehension." Duncan says he expects mortgage demand to "continue to be curtailed by affordability constraints, while homeowners with signifi- cantly lower-than-current mortgage rates may be discouraged from listing their property and potentially taking on a new, much higher mortgage rate." e HPSI survey measures six components: » Good/Bad Time to Buy » Good/Bad Time to Sell » Home Price Expectations » Mortgage Rate Expectations » Job Loss Concerns, and Household Income Four of the index's six components increased modestly month over month, including those associated with homebuying and home-selling conditions; however, both remain well below year-ago levels, having declined on net 28 and 38 points, respectively. As for job and income concerns, the net share of those who say they are not concerned about losing their job decreased 13 percentage points month over month. e percentage of respondents who say their household income is significantly higher than it was a year ago is unchanged month over month. e HPSI reflects consumers' current views and forward-looking expectations of housing market conditions and is used along with exist- ing data to inform housing-related analysis and decision-making, according to Fannie Mae.