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Rise in sentiment good news for starts, not sales

The Fannie Mae Home Purchase Sentiment Index has hit a record high, but the detail shows the share of households who see now as a good time to buy is still relatively low. High house prices and a lack of inventory are keeping that component of sentiment low, which argues against a rise in home sales. But a high HPSI is good news for single-family housing starts, which are set to end the year up 10% y/y.

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