Amid the Fed's consecutive rate hikes, home buying sentiment deteriorated significantly. However, conditions have improved of late. The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased by 3.7 points in December 2022 to 61.0.
Doug Duncan, Fannie Mae Senior Vice President and Chief Economist said, "In December, the HPSI inched upward slightly, as consumers reported increased expectations that mortgage rates and home prices may decrease over the next year – perhaps reflecting recently observed declines in mortgage rates and average home prices."
