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Fannie Mae's January 2016 Housing Survey Decreases: Less Income Growth

 
    - Katie Penote - Fannie Mae

 

News 

2/8/2016 - Fannie Mae Housing Index Decreases: Fewer Households Report Income Growth
 

WASHINGTON, DC – Fannie Mae’s Home Purchase Sentiment Index™ (HPSI) decreased 1.7 points to 81.5 in January, with housing affordability constraints reflected in the downward movement of two of the HPSI components. Good Time to Buy figures trended down on net in 2015, declining an additional 4 percentage points in January. The share of consumers who reported that their income was significantly higher than it was 12 months ago fell 3 percentage points after climbing 9 percentage points on net in December.
 
“Housing affordability is being constrained because the pace of growth in real income has not kept up with gains in real home prices as demand has grown faster than supply,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “On the bright side, consumers have been increasingly positive about their ability to get a mortgage, suggesting that credit tightness is not the main issue limiting housing market activity today, a feeling that we also see conveyed by lenders in our Mortgage Lender Sentiment Survey®. We expect further progress in the HPSI to be limited until income growth picks up or supply, particularly in lower-priced homes, expands more rapidly.”
 
For the rest of the Highlights - http://www.fanniemae.com/portal/about-us/media/corporate-news/2016/6346.html

More info - http://www.fanniemae.com/resources/file/research/housingsurvey/pdf/nhs-monthly-data-020816.pdf 

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