How Will Covid-19 Lockdowns Hit the Housing Market? It Gets a Little Clearer

Posted by Wolf Richter

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The “combined COVID-19 and oil shock” are going to do a number on the U.S. housing market, Fannie Mae warned in its monthly report on Wednesday. Actual data for homes sold after the lockdowns began will not be available for a while, and everyone is grappling with preliminary indications of just how ugly this is going to get.

The Home Purchase Sentiment Index (HPSI) plunged 11.7 points in March to 80.8, the largest single-month drop in the data, Fannie Mae said, “reflecting quickly diminishing homebuyer sentiment.”

A survey conducted by the National Association of Realtors in the first week of April, cited by Fannie Mae, showed that 90% of the responding Realtors reported declining buyer interest, with half of them reporting declines of over 50%….CLICK for complete article