The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index^®(HPSI) increased 9.0 points in June to 76.5, building further on the prior month's advance after approaching a survey low in April. Four of the six HPSI components increased month over month, with consumers reporting a significantly more positive view of homebuying and home-selling conditions, as well as greater optimism regarding home price appreciation. Year over year, the HPSI is down 15.0 points.

"A second month of improvement in June allowed the HPSI to regain some of the sharp losses in optimism observed in March and April," said Doug Duncan, Senior Vice President and Chief Economist. "The share of renters who say it's a good time to buy a home is now at its highest level in five years, suggesting favorable conditions for first-time homebuying, consistent with the recent rebound in home purchase activity. Homeowners seem to have taken note of the resulting lack of housing supply, with an increased share saying it's a good time to sell a home. However, this activity may cool again in the coming months, depending on the extent to which it can be attributed to consumers having chosen to delay or to accelerate homebuying plans due to the pandemic. Survey respondents' persistent, substantially elevated concerns about job security in the face of record unemployment remains a key takeaway, particularly among renters and homeowners with a mortgage. We believe the continuing uncertainty regarding the coronavirus' containment suggests an uneven and potentially volatile course toward economic recovery."

Home Purchase Sentiment Index – Component Highlights

Fannie Mae's Home Purchase Sentiment Index (HPSI) increased in June by 9.0 points to 76.5. The HPSI is down 15.0 points compared to the same time last year. Read the full research report for additional information.

• Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home increased from 52% to 61%, while the percentage who say it is a bad time to buy decreased from 39% to 27%. As a result, the net share of Americans who say it is a good time to buy increased 21 percentage points.

• Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home increased from 32% to 41%, while the percentage who say it's a bad time to sell decreased from 62% to 48%. As a result, the net share of those who say it is a good time to sell increased 23 percentage points.

• Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months increased this month from 26% to 34%, while the percentage who said home prices will go down decreased from 35% to 25%. The share who think home prices will stay the same increased from 30% to 31%. As a result, the net share of Americans who say home prices will go up increased 18 percentage points.

• Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months decreased this month from 25% to 17%, while the percentage who expect mortgage rates to go up increased from 25% to 32%. The share who think mortgage rates will stay the same decreased from 43% to 42%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months decreased 15 percentage points.

• Job Concerns: The percentage of respondents who say they are not concerned about losing their job in the next 12 months decreased from 75% to 74%, while the percentage who say they are concerned increased from 24% to 26%. As a result, the net share of Americans who say they are not concerned about losing their job decreased 3 percentage points.

• Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago increased from 18% to 25%, while the percentage who say their household income is significantly lower decreased from 19% to 16%. The percentage who say their household income is about the same decreased from 61% to 58%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago increased 10 percentage points.