Homebuyer sentiment stayed stuck at a low, with most calling it a bad time to purchase, according to Fannie Mae's September 2025 National Housing Survey
Consumer confidence in the United States housing market flatlined in September, with the vast majority of Americans still convinced it’s a bad time to buy a home, according to the latest Fannie Mae National Housing Survey.
The Home Purchase Sentiment Index (HPSI) held steady at 71.4, unchanged from August and down 2.5 points from a year ago, reflecting persistent pessimism among would-be buyers.
Most say it’s a bad time to buy
Seventy-three percent of respondents said September was a bad time to buy a home, up from 72% the previous month. Only 27% called it a good time, a one-point drop. The net share who said it was a good time to buy fell to -46%, the lowest since the spring.
This marks a continuation of the negative trend seen throughout 2025, as affordability pressures and high mortgage rates keep buyers on the sidelines.
US mortgage rates rose for the first time since July. Freddie Mac reported the average 30-year fixed rate climbed to 6.3% for the week ending September 25, up from 6.26% the week before. The 15-year rate also increased, reaching 5.49% from 5.41%.
Rising prices also force Americans to cut back, with nearly 90% saying inflation has changed how they spend, a new TD Bank survey found. This squeeze on budgets could weaken demand for homes and make it harder for buyers to save for down payments or qualify for mortgages. It may also lead to more missed mortgage payments.
“There's an income crunch right now where their income has not gone up. Appreciation and inflation have gone up, so it's a lot more difficult for them to buy a home,” Brian Mozley, chief growth officer at Choice Mortgage Group, previously told Mortgage Professional America.
Mortgage pain and affordability squeeze
Consumers’ outlook on mortgage rates also dimmed. Just 32% expected rates to fall over the next year, down five points from August, while 30% expected them to rise. The net share of those anticipating lower rates dropped to just 2%.
Fannie Mae’s Economic and Strategic Research Group predicted that 30-year mortgage rates will fall to 6.4% by the end of 2025 and drop further to 5.9% by late 2026.
Meanwhile, 57% said getting a mortgage would be difficult, the highest share in a year. “The share who say getting a mortgage would be easy decreased 2 percentage points to 43%,” the survey found.
Selma Hepp, chief economist at Cotality, says a government shutdown could trigger recession fears and a flight to Treasuries—potentially pulling mortgage rates lower. But market unpredictability and labor risks make forecasting tougher than ever. https://t.co/hAUAg90yej
— Mortgage Professional America Magazine (@MPAMagazineUS) September 26, 2025
Sellers still see opportunity, but buyers retreat
While buyers are discouraged, sellers remain more optimistic. Fifty-seven percent said it’s a good time to sell, unchanged from August, though the net share of those positive on selling has fallen sharply since last year.
Home price expectations, meanwhile, remained flat: 40% expect prices to rise in the next 12 months, while 22% expect a decline.
The survey also revealed that only 32% of Americans said the economy is on the right track, while 67% said it’s on the wrong track. Just 32% expect their personal finances to improve in the next year, and 23% expect them to worsen.
The National Housing Survey gathered insights from 1,086 household financial decision makers aged 18 and older between September 2 to September 22, 2025.
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