Interest Rate Hopes Send Fannie Mae Index Higher

Even as consumer sentiment about housing remained generally pessimistic, a change in perceptions about the future of mortgage interest rates did a lot to brighten the mood of consumers responding to Fannie Mae’s National Housing Survey (NHS). The company says its Home Purchase Sentiment Index (HPSI) based on that survey rose 2.9 points in December. That month’s reading of 67.2 is the highest for the index since the spring of 2022 and 6.2 points higher than in December 2022. The increase was largely due to consumers’ expectations that interest rates, already down more than a point from their November levels, would continue to decline over the next 12 months. Thirty-one percent of those responding to the rate prediction question said they expected a decrease, 31 percent said rates would increase, and 36 percent expected no change for a net positive response of 0 percent. This is 22 points higher than in November and a 37-point increase year-over-year. It may have been rate prospects that also gave a slight lift to consumer attitudes toward home buying. The question as to whether it is a good time to do so has been generating a net negative score hovering around a survey low of 70 percent for the last three months. That number rose 5 points in December to a negative net of 66 percent. As for selling, 57 percent of respondents viewed those conditions as good versus 42 percent who did not for a net positive of 17 percent, down 5 points for the month.

January 8, 2024 Download our Mobile App: Download our Mobile App: Housing News Interest Rate Hopes Send Fannie Mae Index Higher Even as consumer sentiment about housing remained generally pessimistic, a change in perceptions about the future of mortgage interest rates did a lot to brighten the mood of consumers responding to Fannie Mae’s National Housing Survey (NHS). The com... (read more) Mortgage Rate Watch Mortgage Rates Little Changed Over The Weekend; Inflation Data in Focus Last week saw several key economic events attempt to exert some influence on interest rate momentum without any obvious winner. Rates ended the week somewhat higher, but most of the increase was in place at the very beginning of the week. The ... (read more) MBS Commentary Strong Start, But Not For Any Particular Reason Bonds ended the previous week at the highest yields since before the December Fed announcement. The story behind the that story is that yields were roughly unchanged from opening levels on Friday, despite high volume responses to the jobs repor... (read more) Rob Chrisman AI Guideline, Cost Structure, Broker, Consulting, Upfront Fee Collection Tools ; loanDepot Cyberattack California is home to approximately 39 million residents, which is about one-eighth of the U.S. population, more than the entire population of Canada, and accounts for 20-25 percent of residential loan production. Most California's residents belong t... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.74% -0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.74% -0.01 0.00 15 Yr. Fixed 6.00% -0.01 0.00 30 Yr. FHA 6.15% -0.01 0.00 30 Yr. Jumbo 6.98% -0.01 0.00 5/1 ARM 6.21% +0.01 0.00 30 Yr. VA 6.15% -0.02 0.00 Updates Daily - Last Update: 1/8 15 Yr. Fixed Rate 6.00% -0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 6.62% +0.01 0.00 15 Yr. Fixed 5.89% -0.04 0.00 Updates Weekly - Last Update: 1/4 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.83% 0.00 0.60 15 Yr. Fixed 6.41% 0.00 0.77 30 Yr. Jumbo 7.12% 0.00 0.55 Updates Weekly - Last Update: 12/27 MBS / Treasuries UMBS 30YR 5.5 100.00 +0.13 Price / Yield Change MBS UMBS 5.5 100.00 +0.13 UMBS 6.0 101.22 +0.08 GNMA 5.5 100.36 +0.11 GNMA 6.0 101.45 +0.06 Pricing as of: 1/8 5:31PM EST 10 Year US Treasury 4.0120 -0.0390 Price / Yield Change US Treasury 2 YR Treasury 4.364 -0.029 5 YR Treasury 3.970 -0.045 7 YR Treasury 3.998 -0.045 10 YR Treasury 4.012 -0.039 30 YR Treasury 4.170 -0.036 Pricing as of: 1/8 5:31PM EST Latest Video Big rate cuts by the Fed might mean 'a real slowdown and recession', warns ... Fed Governor Michelle Bowman says further inflation declines possible witho... Consumers have reached a point where they don't have the incremental spendi... Fed doesn't need to move as fast as people expect, says Wells Fargo's Chris... Around the Web NAR NAR President Resigns Amid Blackmail Threat NY Fed Inflation Expectations Decline Across All Horizons forexlive Fed's Bostic: Rise in unemployment has been 'far less' than would be typical CNBC Oil falls more than 4% as Saudi price cut heightens global demand worries CNBC Mortgage rate decline pulls buyers back into the housing market Calculated Risk Blog Housing January 8th Weekly Update: Inventory Down 2.7% Week-over-week, Up 5.7% Year-over-year Eye on Housing Residential Building Wages Continue to Increase Calculated Risk Blog Moody's: Apartment Vacancy Rate increased in Q4; Office Vacancy Rate in "Uncharted Territory" at Record High CNBC Treasury yields little changed as investors await key economic data Fannie Mae Consumer Optimism About Mortgage Rates Jumps Significantly Calculated Risk Blog Question #5 for 2024: What will the YoY core inflation rate be in December 2024? Eye on Housing Solid Job Growth in 2023 Calculated Risk Blog Question #7 for 2024: How much will wages increase in 2024?

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