Home buyers, sellers feel more optimistic after tariff pause

Despite increasing mortgage rates and economic volatility, the outlook among home buyers and sellers improved on both a monthly and annual basis, according to Fannie Mae’s latest housing survey.   

The government-sponsored enterprise’s monthly Home Purchase Sentiment Index increased to a reading of 73.6 in May, up from 69.2 one month earlier. May’s level also rose from 69.1 on a year-over-year basis. 

Fannie Mae’s HPSI headed higher for the second month in a row after plunging in March to its lowest mark since late 2023 on the heels of President Trump’s various tariff proposals. The index’s upward movement coincided with his announcements of temporary pauses on implementation for some of the taxes.  

May’s numbers climbed up in five out of the six components that make up the…