After dropping in October from what had been an all-time high the previous month, Fannie Mae’s Home Purchase Sentiment Index (HPSI) resumed its upward trek, increasing by 2.6 points in November to 87.8, Strong responses to questions in the National Housing Survey (NHS) to questions about whether it was a good time to buy a home and expectations for home prices were the primary drivers of the index gains.
The survey is based on six of more than a hundred questions asked in the monthly NHS survey. Four of the six components gained ground in November.
The net share of respondents who said now is a good time to buy a home increased 7 percentage points to 29, erasing the previous month’s 6-point drop. The net remains down 1 percentage point compared to the same period last year.