US housing confidence rises in January despite higher costs

Posted on February 10, 2025   |  

The Home Purchasing Sentiment Index (HPSI) rose by 0.3 points in January to 73.4, after dropping in December, and is 2.7 points higher than last year.

Confidence in buying and selling homes improved, with more people expecting home prices to increase this year.

The number of people who think mortgage rates will fall dropped by 13 percentage points in January.

Expectations for rising rent grew, with 65% of people believing rents will go up, an 8-point increase from last month.

While optimism about the housing market is growing, concerns about higher mortgage and rent costs remain.