Consumer confidence in the housing market reached its highest level of 2025 in May, according to Fannie Mae’s latest Home Purchase Sentiment Index (HPSI). The index rose to 73.5—up 4.3 points from April and 5.4 points since March—indicating growing, yet cautious, optimism among potential homebuyers.
Notably, 26% of consumers now say it’s a good time to buy a home, up from 23% the previous month and nearly double the 14% who felt the same in May 2024.
Expectations around mortgage rates also shifted slightly. 29% percent of respondents believe rates will fall over the next 12 months, edging up from 26% in April. However, that remains well below the 45% optimism peak recorded last November.
As for home prices, 45% of consumers expect them to rise in the coming year, while 34% anticipate prices will hold steady. The net share expecting an increase grew by 3 points to 24%.
Overall, the report points to steady improvement in buyer sentiment, though affordability challenges and rate uncertainty continue to temper enthusiasm.
Source : https://bit.ly/3FLowmy
By: Jon Iacono