A growing number of Americans are losing confidence in the economy and the housing market.
According to Fannie Mae’s September 2025 Home Purchase Sentiment Index, nearly 70% of Americans believe the economy is headed in the wrong direction, while 73% say it’s a bad time to buy a home.
Only 32% of people think the country is on the right track, showing that public pessimism hasn’t improved much over the past year.
Inflation, high borrowing costs, and slow job growth continue to weigh heavily on consumer sentiment.
Worries About the Economy
The survey found that just 32% of consumers expect their personal finances to improve in the next year, while 23% think they’ll get worse.
Most respondents, 45%, expect no major change. About 77% said their income hasn’t changed much compared with a year ago, suggesting wage growth is failing to keep up with the cost of living.
Apollo Global Management Chief Economist Torsten Sløk said the labor market is struggling to gain momentum.
“The bottom line is that the labor market is at a standstill, where workers are not getting hired or voluntarily changing jobs,” he said.
Americans Sour on Homebuying
For potential buyers, confidence is especially low. Just 27% of Americans believe it’s a good time to buy a home, while nearly three-quarters think it’s a bad time.
That negative outlook has barely changed throughout the year.
Mortgage rates have come down from their 2023 peak of 8% to around 6%, but affordability remains a major obstacle.
Home prices are 51% higher than they were five years ago, according to the Case-Shiller Home Price Index.
“The reality is that buying into the market, especially in Manhattan or prime Brooklyn still requires a significant amount of cash upfront,” said Michelle Griffith, a luxury real estate broker with Douglas Elliman.
She added that tight inventory and fierce competition continue to keep many buyers on the sidelines.
Sellers Stay Upbeat, Renters Brace for Increases
While homebuyers are discouraged, 57% of current homeowners believe it’s a good time to sell.
That figure is lower than last year but still shows that sellers remain in a stronger position.
About 40% of people expect home prices to rise in the next 12 months, while only 22% predict they’ll fall.
Renters aren’t feeling much relief either. They expect rental prices to rise by an average of 6% over the next year.
More than half of respondents said getting a mortgage today would be difficult, a sign that affordability challenges are spreading across both renters and buyers.
Public Frustration Echoes Online
The report quickly stirred up strong reactions on Reddit, where many people said the survey matches what they see daily.
One person said that even households earning over $200,000 a year can’t afford homes in many cities, adding that “the rich are mostly just getting richer” while everyone else struggles.
Another person said they were more surprised that a third of Americans still believe the economy is on the right track, pointing to “shrinking GDP, rising bond yields, and a weakening dollar.”
Others blamed political leadership or argued that the economy works perfectly well for those who control it.
Pessimism Persists
Overall, Fannie Mae’s data and public reaction paint a clear picture of frustration.
Most Americans feel stuck, earning the same, paying more, and watching housing stay out of reach.
As one person put it, the system seems to be working “exactly as intended” for those at the top.