Home purchase affordability has been a longstanding problem in the mortgage industry, but new survey results from Fannie Mae show that the issue is likely to persist into the near future.
According to their Home Purchase Sentiment Index (HPSI) survey, disruption in income potential and drops in real estate prices have created an environment without improvement in the near-term. The survey, which has been conducted for the last two years, found that respondents who considered home purchase lending to be an attractive investment declined from 48% to 31% since December 2020. At the same time, the percentage of potential homebuyers who said their personal financial situation had improved dropped considerably from 49% to 36%.
The HPSI survey also reported that few homebuyers feel that financial security is sufficient to afford a down payment. As a result, these homebuyers are struggling to move forward with the purchase process, hindering industry growth.
Bullet Points
• Home purchase affordability remains a problem, according to Fannie Mae’s HPSI survey
• The percentage of respondents considering home purchase lending to be an attractive investment decreased from 48% to 31% since December 2020
• Few homebuyers feel that their personal financial situation has improved, down from 49% to 36%
• Lack of financial security is preventing many potential buyers from affording a down payment, hindering industry growth
You can read this full article at: https://www.housingwire.com/articles/consumers-point-to-mortgage-rates-not-home-prices-as-key-barrie-to-affordability/(subscription required)
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