Americans continued to hold positive attitudes toward the housing market and economy in February and were more optimistic than they were a year ago, according to the latest National Housing Survey by Fannie Mae. However, the organization also cautioned that the survey failed to fully reflect a sharp downtown in the stock market, as responses were collected during the early part of this decline.

The Home Price Perception Index stood at 92.5, down 0.5 points from January but a year-over-year gain of 6.7 points. The index is derived from six components in the National Housing Survey, included perceptions on whether it is a good time to buy or sell a home, expected changes in home prices and mortgage rates, concerns about job loss, and changes in household income.

"The HPSI remained relatively steady in February, reflecting another month of robust consumer sentiment consistent with strong housing market data to start the year," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "In particular, the household income sentiment picked back up as more workers saw their wages rise amid tight labor market conditions, helping bolster already strong housing demand."

For the third consecutive month, 59 percent of respondents said they believe it is a good time to buy a home – up 6 percent from February 2019. Thirty-two percent said they though it was a bad time to buy a home, up 2 percentage points from the previous month but down 6 percentage points from the previous year.

Among those who thought it was a good time to buy a home, 32 percent cited favorable mortgage rates as the primary reason. Twenty-three percent named favorable economic conditions, while 18 percent said there is an ample inventory of homes available and 10 percent said they consider home prices to be affordable.

Thirty-eight percent said they think mortgage rates will go up in the next 12 months, up 5 percentage points from the previous month but down 17 percentage points from the previous year. Eight percent said they think rates will decrease, up 1 percentage point from January and 5 percentage points from February 2019.

Fifty-nine percent said they thought it would be easy to get a mortgage, up 1 percentage point from both the previous month and previous year. Thirty-nine percent said they thought it would be difficult to qualify for a mortgage, up 1 percentage point from the previous month but down 1 percentage point from the previous year.

Just over two-thirds of respondents—67 percent—said they would buy their next home if they were to move, up from 64 percent in the previous month and 65 percent in the previous year. Thirty percent said they would rent their next home, unchanged from the previous year but down 2 percentage points from the previous month.

Sixty percent said they think home rental prices will go up in the next 12 months, unchanged from the previous month and up 4 percentage points from the previous year. The share of respondents expecting rents to decrease held steady at 3 percent. On average, respondents said they think rental prices will increase by 5.1 percent over the next 12 months – up from 4.6 percent in January and 4.3 percent in February 2019.

Sixty-seven percent said they believe it is a good time to sell a home, up 1 percentage point from January and 7 percentage points from February 2019. Twenty-two percent considered it a bad time to sell, creeping up 1 percentage point from the previous month but down 8 percentage points from the previous year.

Forty-seven percent said they think home prices will go up in the next 12 months, down from 48 percent in January and 50 percent in December. However, this share was also up 4 percentage points from the previous year. Eight percent said they expect home prices to drop, up from 7 percent in the previous month but down 2 percentage points from the previous year. On average, respondents said they think home prices will grow 2.8 percent over the next year – up from 2.5 percent in both the previous month and previous year.

Eighty-five percent said they are not concerned about losing their job in the next 12 months, down 1 percentage point from the previous month and 5 percentage points from the previous year. Thirteen percent said they are worried about potential unemployment, down 1 percentage point from January but up 4 percentage points from February 2019.

Thirty-two percent said their household income is significantly higher compared to a year ago, up 5 percentage points from both the previous month and previous year. For the third straight month, 11 percent said their household income is significantly lower – up 2 percentage points from February 2019.

Fifty-one percent said they expect their personal financial situation to get better over the next 12 months, down 3 percentage points from January but up 6 percentage points from February 2019. Eleven percent said they think their personal financial situation will get worse, up 2 percentage points from the previous month but down 1 percentage point from the previous year.

Sixty-one percent said they believe the U.S. economy is on the right track, a gain of 3 percentage points from January and 9 percentage points from February 2019. Thirty-three percent of respondents said they think the economy is on the wrong track, down 1 percentage point from the previous month and 5 percentage points from the previous year.

Fannie Mae's National Housing Survey interviews approximately 1,000 American adults in telephone interviews each month to track attitudinal shifts on the housing market and economy. Respondents are asked more than 100 questions during the interviews.