73% of Americans think it’s a bad time to buy a house

A growing wave of economic pessimism is spreading across the United States. New survey results from Fannie Mae show that nearly 70% of Americans believe the economy is moving in the wrong direction, and an even larger share—73%—say now is a bad time to buy a home. The data highlights worsening sentiment among consumers and deep concern about the housing market as the fall season begins.

According to Fannie Mae’s September 2025 Home Purchase Sentiment Index, based on the National Housing Survey, just 32% of respondents think the economy is on the “right track,” while 67% believe it is on the “wrong track.” Those figures have barely changed over the past year, reflecting persistent anxiety driven by inflation, elevated borrowing costs, and global economic uncertainty.

The pessimism extends to personal finances as well. Only 32% expect their financial situation to improve in the next year, while 23% expect it to worsen, and 45% expect no real change. A record-high 77% say their income is roughly the same as last year. Only 14% report significantly higher income, indicating that wage growth is failing to offset the rising cost of living, while just 8% report significantly lower income, suggesting stability but not advancement.

Torsten Sløk, chief economist at Apollo Global Management, offered another explanation for the slowdown: hiring activity is weak and voluntary job changes have fallen to levels typically seen during recessions. Job openings are shrinking, unemployment is rising, and job growth has cooled.

“The labor market is at a standstill, where workers are not getting hired or voluntarily changing jobs,” Sløk said.

Housing outlook: overwhelmingly negative

Sentiment around homebuying is even more discouraging.
Only 27% of survey participants believe it’s a good time to purchase a home, compared with 73% who say it’s a bad time. The net share of people who view buying conditions positively dropped again in September, holding near levels seen since the summer.

High mortgage rates and elevated prices are the main reasons. Many buyers were able to lock in rates under 3% during the pandemic, but by late 2023 rates peaked near 8%, and today remain in the 6% range. Even a hypothetical 0% mortgage wouldn’t make homes affordable in many major metro areas.

But the primary obstacle is pricing.
Home prices are 51% higher than they were five years ago, according to the Case-Shiller Home Price Index.

“Buying into the market—especially in Manhattan or prime Brooklyn—still requires a significant amount of cash upfront,” said Michelle Griffith of Douglas Elliman. “Inventory is tight and competition is high, so the price itself keeps most buyers on the sidelines.”

The Home Purchase Sentiment Index reinforces that reality: throughout 2025, around 70% of Americans have consistently said it’s a bad time to buy a home, far exceeding the share who say conditions are favorable. Rising prices and high mortgage rates continue to erode affordability, making the path to homeownership increasingly difficult.