The Fannie Mae Home Purchase Sentiment Index decreased 0.5 points in June to 91.5 after nearing its survey high last month. An 8-percentage point increase in the net "Mortgage Rates Will Go Down" component was more than offset by the index's other five components, all of which were either negative or flat in June, highlighted by "Good Time to Buy," which fell 4 percentage points this month.

"Growing expectations that mortgage rates will remain steady suggest improved stability for housing affordability and helped keep the HPSI relatively flat this month, despite modest declines in other components," said Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae. "Regional variations in housing optimism appear to be tied to a divergence in housing affordability; for example, home purchase sentiment is higher in the Midwest and South than in the West and, to a lesser extent, the Northeast, where the lack of entry-level inventory and the resultant strong price appreciation has had a more profound impact on affordability. With fewer consumers expecting rates to jump back up – thereby creating less urgency to buy now – we expect housing market activity to remain stable."

HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS

Fannie Mae's 2019 Home Purchase Sentiment Index (HPSI) decreased in June by 0.5 points to 91.5. The HPSI is up 0.8 points compared to the same time last year.

The net share of Americans who say it is a good time to buy a home decreased 4 percentage points to 23%. This component is down 5 percentage points from the same time last year.

The net share of those who say it is a good time to sell a home remained unchanged at 43%. This component is down 4 percentage points from the same time last year.

The net share of those who say home prices will go up over the next 12 months decreased 3 percentage points to 38%. This component is down 8 percentage points from the same time last year.

The net share of Americans who say mortgage rates will go down over the next 12 months increased 8 percentage points to -29%. This component is up 24 percentage points from the same time last year.

The net share of Americans who say they are not concerned about losing their job over the next 12 months decreased 3 percentage points to 73%. This component is down 3 percentage points from the same time last year.

The net share of those who say their household income is significantly higher than it was 12 months ago decreased 1 percentage point to 20%. This component is up 1 percentage point from the same time last year.