A rising sense of financial pessimism is taking maintain within the U.S., as new Fannie Mae survey knowledge reveals practically 70% of Individuals imagine the economic system is headed within the improper route. A good greater proportion (73%) say it’s a nasty time to purchase a home. Coupled with mounting considerations in regards to the housing market, the findings underscore the challenges going through would-be homebuyers, and paint an more and more bleak image for client sentiment as autumn begins.
In keeping with Fannie Mae’s September 2025 Home Purchase Sentiment Index, utilizing knowledge from the Nationwide Housing Survey, solely 32% of respondents mentioned the economic system is on the “proper monitor,” in comparison with a putting 67% who imagine it’s going the “improper monitor.” These numbers have shifted little in the course of the previous yr, signaling a cussed lack of religion within the nation’s financial trajectory, and the “improper monitor” proportion ticked up from 64% in August. The regular majority specific pessimism in regards to the economic system displays ongoing turbulence from inflation, excessive borrowing prices, and the continued impacts of world occasions on U.S. households.
This broad-based skepticism transcends the headline figures. Just 32% of consumers expect their personal finances to improve over the next year, while 23% anticipate things will get worse. Most people—45%—expect little change, which aligns with a record high share (77%) saying their household income has remained about the same as it was a year ago. Only 14% report significantlyhigher income, suggesting that wage gains are failing to keep pace with higher living costs and financial pressures, and yet only 8% report significantly lower income, indicating stability.
Apollo Global Management Chief Economist Torsten Sløk weighed in on one other clarification of the economic system’s stagnancy on Tuesday, noting each the hiring price and the quits price are low, even at recessionary ranges, with a declining variety of job openings, rising unemployment, and slower job development, besides.
“The underside line is that the labor market is at a standstill, the place staff aren’t getting employed or voluntarily altering jobs,” Sløk wrote.
A bad time to buy
For aspiring homeowners, the outlook is especially grim. When asked whether it’s a good time to buy a home, just 27% said yes, while a resounding 73% think it’s a bad time. The net share of respondents who view buying conditions as favorable fell two percentage points month-over-month to negative 46%—a level that has persisted since the summer.
Homebuyers’ attitudes toward the housing market today stem from stubbornly high mortgage rates and home prices. During the pandemic, buyers enjoyed sub-3% mortgage rates, which ushered in a wave of first-time homeowners. But by late 2023, mortgage rates had peaked at 8%, and immediately nonetheless stay close to in the 6% range. And even a 0% mortgage rate wouldn’t make housing inexpensive for Individuals in a number of main metro areas.
Nonetheless, house costs are “the larger hurdle,” Michelle Griffith, a luxurious real-estate dealer with Douglas Elliman primarily based in New York Metropolis, beforehand informed Fortune. Certainly, house costs are 51% greater than they have been 5 years in the past, in response to the Case-Shiller Dwelling Worth Index.
“The fact is that purchasing into the market particularly in Manhattan or prime Brooklyn nonetheless requires a big amount of money upfront,” Griffith mentioned. “Stock is tight and competitors is excessive, so the price of the property itself is what retains most patrons on the sidelines.”
Recent HPSI data confirms Americans’ skepticism. Throughout 2025, the portion of those saying it’s a bad time to buy has hovered around 70%, several times higher than the share who feel now is a good time. Persistently rising home prices and steep mortgage rates have contributed to these negative perceptions, making affordability an ever-greater challenge for most buyers.
Still a seller’s market
In stark contrast to buyers, home sellers remain moderately optimistic. Fannie Mae found that 57% believe it’s a good time to sell their home, with only 41% saying it’s a bad time. This sentiment has declined compared to the previous year, where the net share of those seeing it as a good time to sell topped 30%; September’s figure stands at just 17%. Still, the “good time to sell” contingent outnumbers the buyers—reflecting continued seller’s market dynamics, even as perceptions soften.
Looking ahead, 40% of survey participants expect home prices to rise in the next 12 months, while 22% believe they’ll fall, and 38% foresee stability. The net share predicting price increases is 18%—unchanged from August. Meanwhile, opinions are split on mortgage rates, with roughly a third expecting rates to go down and another third bracing for further increases. Notably, just 2% now believe mortgage rates will decline—down five percentage points from the previous month—indicating that expectations for relief on borrowing costs remain low.
To be sure, there are some subtle signs the housing market could be shifting toward favoring buyers. Mortgage applications have slightly increased, and home prices are starting to plateau or even drop in some markets.
“For potential patrons who’ve been ready on the sidelines, the housing market is lastly beginning to pay attention,” First American chief economist Mark Fleming wrote in an Aug. 29 First American post. Even when that’s true, Fannie Mae’s survey exhibits American homebuyers nonetheless really feel as if the market isn’t of their favor.
Plunging into leases
Exterior of the possession market, the survey signifies renters imagine prices will climb, with customers anticipating a 6% common enhance in rental costs over the yr forward—a 1.1 percentage-point month-to-month bounce. Employment confidence stays strong, with 75% of working respondents not involved about job loss within the subsequent yr.
The survey also found a slight rise in renting preference: if moving, 33% would choose to rent, up one point, while 67% would opt to buy. Additionally, 57% report that obtaining a mortgage today would be difficult—up slightly from the prior month—further confirming the affordability squeeze.
The Fannie Mae data points to a sustained period of uncertainty and challenge for Americans. With most consumers wary about both the broader economy and their personal financial prospects, and with homebuying seen as increasingly out of reach, it is clear that deep anxieties about the nation’s financial trajectory are shaping everyday decisions and dampening optimism as fall gets underway.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
