1. Fannie Mae's HPSI decreased 3.7 points to 69.8 month over month. 2. Year over year, HPSI is down 2.8 points. 3. The survey reflects declining consumer sentiment toward housing. 4. Economic forecasts may become pessimistic amid worsening averages. 5. Fannie Mae's insights can influence future housing policies and markets.
The decrease in HPSI indicates reduced consumer confidence, traditionally leading to decreased housing demand, which impacts FNMA’s core business model. Historical instances, such as housing dips in 2008, showcase such sentiment translating to stock price declines.
The HPSI drop is a critical indicator of housing market health and consumer confidence, essential for FNMA's valuation. Given FNMA's exposure to housing sector fluctuations, such metrics have significant implications on its stock performance.
The immediate effects of decreased consumer confidence in housing could lead to short-term stock price fluctuations. For instance, similar sentiment shifts in past surveys have resulted in immediate market reactions.
WASHINGTON, July 7, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today published the results of its June 2025 National Housing Survey® (NHS), which includes the Home Purchase Sentiment Index® (HPSI), a measure of consumer sentiment toward housing. Month over month, the HPSI decreased 3.7 points to 69.8. Year over year, the HPSI is down 2.8 points. For more information, access the latest data release or the key indicator data file.
Fannie Mae's Economic and Strategic Research Group, led by Chief Economist Mark Palim, studies current data, analyzes historical and emerging trends, and conducts surveys of consumers and mortgage lenders to inform forecasts and analyses on the economy, housing, and mortgage markets.
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Opinions, analyses, estimates, forecasts, beliefs, and other views of Fannie Mae's Economic and Strategic Research (ESR) Group or survey respondents included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, beliefs, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, beliefs, and other views published by the ESR Group represent the views of that group or survey respondents as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.
SOURCE Fannie Mae