The Fannie Mae Home Purchase Sentiment Index fell 1.7 points to 81.5 in January, reflecting the effects of decreasing housing affordability.
This index, which launched in August, combines the results of six questions from Fannie Mae's National Housing Survey. Four of the six components decreased in January from the month prior.
"Housing affordability is being constrained because the pace of growth in real income has not kept up with gains in real home prices as demand has grown faster than supply," said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a news release Monday.
"On the bright side, consumers have been increasingly positive about their ability to get a mortgage, suggesting that credit tightness is not the main issue limiting housing market activity today."
The net share of respondents who said it is a good time to buy dropped four basis points to 31%. Additionally, 37% of respondents believe that home prices will rise, down three basis points.
Also falling by three basis points was the net share of respondents who believe their household income is significantly higher than a year ago, at 12%. The net share of respondents who are not concerned about losing their job declined a basis point to 71%.
The only component to go up was the share of respondents who believe it is a good time to sell a house, which rose a basis point to 9%. The share of respondents who think mortgage interest rates will go down remained at negative 52% in January.
