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The Home Purchase Sentiment Index: A New Housing Indicator

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  • James A Wilcox

Abstract

We built a home purchase sentiment index (HPSI) with consumers’ responses to questions about home buying and selling conditions, income gains and job concerns, and house price and mortgage rate expectations. The HPSI can help forecast mortgage originations and house prices, sales, and starts. Forecasting horse races during 2012–14 show the HPSI handily outperformed other sentiment indices. We show differences in the HPSI by income and by age groups. We also suggest other aspects of housing where survey-based indicators may help, such as demand by millennials or seniors, home owners’ moving, renters’ intentions, and mortgage refinancing, delinquency, or default rates.

Suggested Citation

  • James A Wilcox, 2015. "The Home Purchase Sentiment Index: A New Housing Indicator," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 50(4), pages 178-190, October.
    • Handle: RePEc:pal:buseco:v:50:y:2015:i:4:p:178-190
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    References listed on IDEAS

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    Cited by:

    1. Lucy F. Ackert & Stefano Mazzotta, 2021. "Homeownership for All: An American Narrative," JRFM, MDPI, vol. 14(6), pages 1-14, May.
    2. Héctor Saldaña-Márquez & Diana C. Gámez-García & José M. Gómez-Soberón & Susana P. Arredondo-Rea & Ramón Corral-Higuera & María C. Gómez-Soberón, 2019. "Housing Indicators for Sustainable Cities in Middle-Income Countries through the Residential Urban Environment Recognized Using Single-Family Housing Rating Systems," Sustainability, MDPI, vol. 11(16), pages 1-29, August.
    3. Chung-Chu Liu & Jason C. H. Chen & Che-Cheong Poon, 2019. "Perception Types Of Home Buyers By Q Methodology: A Comparative Study Of Hong Kong, Taiwan, And The Usa," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(01), pages 235-257, March.

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