The central bank slashed rates by 25 basis points last month. But a majority of homeowners feel it wasn't enough
United States homeowners have voiced deep skepticism about the Federal Reserve’s recent quarter-point rate cut, with a majority calling the move “too little, too late” to ease their financial burdens or spur action in the housing market, according to a new Unlock Technologies survey.
The findings come as the mortgage industry braces for the Fed’s next rate decision amid a government shutdown that threatens to muddy the economic outlook further.
Unlock’s survey of 2,010 US homeowners from September 18 to 22 found that 59% said the Fed’s rate drop did not motivate them to buy, sell, refinance, or take on new debt.
“Even though this is expected to be the first of several rate drops, the trickledown effect is not motivating homeowners to take significant action,” Michael Micheletti, chief marketing officer at Unlock, said.
“They’re operating from a place of worry, with most anticipating having to spend even more in 2026 on household expenses and many working with little to no emergency fund.”
The survey revealed that 54% of homeowners felt uncertain or pessimistic about the US economy, while 40% said they were worse off financially than a year ago.
Financial stress remains acute, with 49% citing personal finances as their top concern—rising to 58% among millennials.
“Millennials have had a tougher time entering the housing market than preceding generations,” Micheletti said, pointing to lingering debt and economic shocks. He flagged that Gen Xers and baby boomers are also feeling the squeeze, often caught supporting both children and aging parents.
A fragile financial safety net
The data showed a growing fragility in household finances. Over a third of homeowners reported less than $1,000 in emergency savings, a marked increase since January. Twenty-seven percent had less than $500, or nothing at all, set aside for emergencies.
Despite the Fed’s move, 77% of homeowners still viewed homeownership as a key path to building wealth, and 60% said home equity offered security. Yet, only 25% believed 2026 would be a good year to buy a home, and 59% said they would not consider purchasing until 30-year mortgage rates dropped to 6% or lower.
Similarly, vast majority of Americans are still convinced it’s a bad time to buy a home, according to the latest Fannie Mae National Housing Survey. Seventy-three percent of respondents said September was a bad time to buy a home, up from 72% the previous month.
Meanwhile, for clients who are ready, with good credit, a down payment, and a housing market that meets their needs as well as a long-term horizon, Brian Peardon, private wealth advisor at BridgePort Financial Solutions says he leans toward buying now with hedges like rate locks and refinancing optionality for a mortgage.
Fed’s impact on mortgage rates
Industry leaders have echoed homeowners’ doubts. “There’s this market perception that the Fed controls mortgage rates. The Fed does not control mortgage rates. The Fed merely sets short term rates. The market controls longer rates,” Glen Weinberg, managing partner at Fairview Commercial Lending, told Mortgage Professional America.
“Regardless of how much they cut rates, because of inflation and market expectations, mortgage rates are going to stay high—which is going to continue to impact the real estate market.”
Fed officials remain split on the pace of future cuts. Governor Stephen Miran called for aggressive easing, arguing the bond market supports it, while Minneapolis Fed President Neel Kashkari warned that rapid cuts could reignite inflation and that mortgage rates may not fall even if the Fed acts.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
