The Fannie Mae Home Purchase Sentiment Index increased 2.2 percentage points in April to 86.7, rebounding following March's dip. Five of the six components that comprise the HPSI were up. The net share of Americans who reported that now is a good time to buy a home increased 5 percentage points, while the net share reporting that now is a good time to sell a home decreased 5 percentage points. Consumers also expressed greater confidence about the stability of their jobs, with the net share of that component jumping 7 percentage points. Additionally, on net, the share of respondents reporting that their household income is significantly higher than it was 12 months ago increased 2 percentage points. The net share of Americans who say that mortgage rates will go down over the next twelve months rose 3 percentage points. Finally, the net share of those who think home prices will go up increased by 1 percentage point this month.

"The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track."