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May 2024 » thefivestar.com 67 May 2024 J O U R N A L At the state level, the appraisal differ- ence between white majority tracts and both Hispanic/Latino and Black majority tracts decreased in nearly all states with data available in Phase 2 compared to Phase 1. In Mississippi, the evaluation difference between Black and white ma- jority tracts grew throughout Phase 2. In three states—Florida, New Mex- ico, and Texas—the valuation disparity among Hispanic/Latino majority tracts and white majority tracts widened throughout Phase 2. In Phase 2, the percentage of low appraisals in Hispanic/Latino majority tracts was less than that in white majority tracts in two states: Connecticut and New Jersey. In all other states, Hispanic/Lati- no and Black majority tracts still had a higher percentage of low appraisals than white majority tracts, but the disparity has shrunk significantly for the majority. FANNIE MAE UPDATES ON HOMEBUYER OPTIMISM A ccording to a new report, the Fannie Mae Home Purchase Sentiment Index (HPSI) fell 0.9 points to 71.9 in March, the first dip since November 2023, due mostly to heightened pessimism about the outlook of mortgage rates. Some 34% of consum- ers now anticipate mortgage rates will rise over the next year, up from 32% last month and higher than the 29% who predict rates will fall. Despite the increase in pessimism about interest rates, consumer evalua- tions of homebuying and home-selling circumstances improved somewhat in March, and both measures have now climbed for several months in a row. However, the overall lack of housing affordability continues to weigh on consumers' perception that now is a "good time to buy" a home, with only 21% agreeing with that sentiment. Overall, the index is up 10.6 points year over year. "The HPSI remained relatively flat in March, but we're seeing signs that consumers may be adjusting their expec- tations for the housing market to better accommodate the higher mortgage rate and home price environment," said Doug Duncan, Fannie Mae SVP and Chief Economist. "Both our 'good time to buy' and 'good time to sell' measures contin- ued their slow upward drift this month. However, consumers took a slightly more pessimistic view on the likely direction of mortgage rates, likely reflecting the fact that actual mortgage rates have moved upward since the start of the year. With the historically low rates of the pan- demic era now firmly behind us, some households appear to be moving past the hurdle of last year's sharp jump in rates, an adjustment that we think could help further thaw the housing market." Home Purchase Sentiment Index (HPSI) Highlights: Fannie Mae's Home Purchase Senti- ment Index (HPSI) decreased in March by 0.9 points to 71.9. The HPSI is up 10.6 points compared to the same time last year. » Good/Bad Time to Buy: The percent- age of respondents who say it is a good time to buy a home increased from 19% to 21%, while the percentage who say it is a bad time to buy decreased from 81% to 79%. As a result, the net share of those who say it is a good time to buy increased 4 percentage points month over month (MoM). » Good/Bad Time to Sell: The percent- age of respondents who say it is a good time to sell a home increased from 65% to 66%, while the percentage who say it's a bad time to sell decreased from 35% to 34%. As a result, the net share of those who say it is a good time to sell increased 2 percentage points MoM. » Home Price Expectations: The per- centage of respondents who say home