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M REPORT | 51 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Rosy Outlook Consumers report a more optimistic home-purchase view. C onsumers in October re- ported a more optimistic view of both buying and selling homes, while also noting a less positive outlook on personal finances and employment, based on Fannie Mae's Home Pur- chase Sentiment Index (HPSI). Experts such as Doug Duncan, SVP and Chief Economist at Fannie Mae said, "to date, the HPSI has recovered over 60% of its COVID-19 pandemic loss, reflecting the bright spot that the mortgage market has been in the economy." However, he continued, "the evolution of the pandemic and the 2020 election outcomes may have longer-lasting and unexpected impacts on consumer sentiment, as we saw following the 2016 elec - tions, and we expect both factors will shape the housing market over the coming months." The HPSI inched up .7 points in October, marking the third- consecutive month-to-month increase. Three of the six HPSI components increased in October. Since last year, the HPSI is down 7.1 points. While the full research report is available, Fannie Mae highlight - ed the following components: Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home increased from 54% to 60%, while the percentage who say it is a bad time to buy decreased from 38% to 35%. As a result, the net share of Americans who say it is a good time to buy increased nine per - centage points month over month. Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home increased from 56% to 59%, while the percentage who say it's a bad time to sell decreased from 38% to 35%. As a result, the net share of those who say it is a good time to sell increased six percentage points month over month. Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months decreased this month from 41% to 40%, while the percentage who say home prices will go down increased from 17% to 20%. The share who think home prices will stay the same decreased from 34% to 31%. As a result, the net share of Americans who say home prices will go up dropped four percentage points month over month. Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months remained unchanged at 11%, while the percentage who expect mortgage rates to go up decreased from 38% to 32%. The share who think mortgage rates will stay the same increased from 44% to 49%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months increased six percent - age points month over month. Job Concerns: The percent- age of respondents who say they are not concerned about losing their job in the next 12 months decreased from 83% to 79%, while the percentage who say they are concerned increased from 16% to 21%. As a result, the net share of Americans who say they are not concerned about losing their job decreased nine percentage points month over month. Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago decreased from 24% to 23%, while the percentage who say their household income is considerably lower increased from 17% to 20%. The percentage who say their household income is about the same dropped from 59% to 55%. As a result, the net share of those who say their household income is significantly higher than 12 months ago decreased four per - centage points month over month. Wealth Building through Homeownership First American examines the link between homeownership and wealth creation. A recent report from the experts at First American reveals the link between homeownership and wealth. The report states that homeownership is a great way to build one's wealth. Economists have long studied homeownership's links to wealth and have found owning a home is especially beneficial for wealth-building in low-income housing areas. First American was adamant about how integral homeownership was in building wealth; the experts revealed that it is among the most significant factors. "For the majority of households that transition into homeownership, the most recent data reinforces that housing is one of the biggest positive drivers of wealth creation," the report stated. Speaking of data, the 2019 Survey of Consumer Finances, which collects various pertinent information regarding households' finances, showed that the average homeowner possesses a staggering 40 times the household wealth of a renter (specific data pointed to roughly $254,900 for the homeowner versus $6,270 for the renter). The survey results do not reveal any direct cause and effect, and no expert insight is given regarding the distribution of wealth either. In light of this, when studying the variance between the wealth of renters and homeowners by income, it further strengthens the proof of the impressive wealth-building power that comes with homeownership. Specifically, data reveals that homeowners are wealthier than renters across the board, in every single income bracket (the one exception being the very top income bracket). To give you an idea with specific numbers, the income group of earners making the least amount of money—who were homeowners— posted an average net worth of $102,500. In contrast, renter households in that same income bracket were worth only $1,500.