Home-buying sentiment drops in July – Fannie Mae

US consumers' home-purchase sentiment dropped in July after two straight months of increases, as more renters and lower-income households impacted by COVID-19 think now is a bad time to buy a home. The Fannie Mae Home Purchase Sentiment Index (HPSI) dwindled 2.3 points from June to July, down to a 74.2 reading. The HPSI is also 19.5 points lower than this time a year ago. "Following a partial recovery of the HPSI in the previous two months, consumer sentiment toward housing took a slight step back in July amid a rise in coronavirus infections across many parts of the country, including the south and southwest," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Supply constraints appear to be applying upward pressure to consumers' home price expectations, which in turn has contributed to both a sharp reversal in optimism about whether it is a good time to buy a home and further improvement in hom