Fannie Mae just released its latest housing survey, showing Americans are cautious about buying homes right now.
Why Rates Are Still High
Even though the Federal Reserve has cut rates a few times, mortgage rates have stayed stubbornly near 7%, higher than many expected. Economic ups and downs, inflation, and market uncertainty are keeping rates from dropping further.
- In September 2025, the Fed cut the federal funds rate to 4.0%–4.25%, the first cut since December 2024.
- Officials said more cuts could happen later in 2025 if needed.
Consumer Sentiment Is Pessimistic
Fannie Mae’s Home Purchase Sentiment Index (HPSI) measures how people feel about buying homes. The latest results show:
- HPSI stayed at 71.4, slightly down from last year.
- Only 2% of consumers expect mortgage rates to fall in the next 12 months.
- 27% say it’s a good time to buy a home, while 73% say it’s a bad time.
- Opinions about home prices staying the same or rising remain steady.
In short, most Americans think buying a home right now is expensive and risky.
What the Survey Shows About Selling
- The share of people who think it’s a good time to sell stayed roughly the same.
- 57% say selling is a good idea, while 41% disagree.
This suggests sellers are more confident than buyers, thanks to rising prices and low inventory in some areas.
What Fannie Mae Measures
The survey asks questions about:
- Whether it’s a good or bad time to buy or sell
- Expectations for home prices and mortgage rates
- Concerns about job security
- Changes in income compared to last year
These insights help economists and real estate professionals understand consumer behavior.
Bottom Line
Right now, Americans are cautious about buying homes. Rates are higher than expected, prices are still strong, and many buyers are waiting for better conditions. Sellers may have an edge in certain markets, but the overall mood is cautious.
If you’re thinking of buying, it’s important to know your finances, stay informed about rate changes, and plan carefully before making a move.