Persistently high mortgage rates are making people more pessimistic about the housing market

Americans are feeling worse astir the lodging marketplace arsenic owe rates enactment elevated, according to Fannie Mae’s latest survey of user attitudes.

Just 30% of respondents polled by Fannie Mae present expect owe rates to autumn successful the adjacent 12 months, down from 35% successful January. Thirty-three percent spot owe rates rising, and 36% deliberation they’ll enactment the same.

Those shifting views helped the Fannie Mae Home Purchase Sentiment Index diminution 1.8 points successful February to 71.6. It notched its archetypal year-over-year diminution successful astir 2 years, falling 1.2 points from February 2024.

Most of the survey was conducted successful the archetypal 2 weeks of February, erstwhile owe rates remained stuck astir 6.9%. In caller weeks, they’ve fallen to 6.63% amid increasing economical uncertainty and President Donald Trump’s rapidly evolving tariff policies.

Meanwhile, 41% of survey respondents spot location prices rising successful the adjacent 12 months from their already precocious levels.

“While immoderate consumers whitethorn beryllium dilatory acclimating to the higher mortgage-rate environment, the immense bulk proceed to judge it is simply a ‘bad time’ to bargain a location — with precocious location prices cited arsenic the superior sticking point,” Mark Palim, Fannie Mae’s elder vice president and main economist, said successful a statement.

Last month, 76% of survey respondents said they thought it was a atrocious clip to bargain a home, down somewhat from January’s 78%.

Consumers are besides increasing somewhat much wary astir their ain fiscal positions. Twenty-three percent of employed respondents said they're acrophobic astir losing their jobs successful the adjacent 12 months, up from 22% successful January.

Learn more: How overmuch location tin I spend with a $70,000 salary? 

The nett percent of respondents who reported their incomes had risen importantly successful the past 12 months besides fell 1 percent constituent to 7%.

The Home Purchase Sentiment Index is derived from prime questions from Fannie Mae’s monthly National Housing Survey of astir 1,000 adults. The February survey was conducted betwixt Feb. 1 and Feb. 18.

Claire Boston is simply a Senior Reporter for Yahoo Finance covering housing, mortgages, and location insurance.

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