Americans are feeling the squeeze when it comes to the state of the economy and the housing market, according to the latest Fannie Mae National Housing Survey. The survey, conducted from September 2 to September 22, 2025, paints a picture of widespread pessimism, with nearly 70 percent of respondents believing the U.S. economy is on the wrong track. Only 32 percent said the economy is heading in the right direction, a sentiment that’s remained relatively steady over the past year, according to data reported by UPI and The Hill.
While this bleak outlook is not entirely new—last September, 68 percent felt the economy was veering off course—it marks a slight uptick from August 2025, when 64 percent of respondents expressed similar concerns. The survey, which polled 1,086 individuals and carries a margin of error of 3.79 percent, highlights just how entrenched economic anxieties have become among Americans.
But it’s not just the broader economy that’s weighing on people’s minds. The housing market, a cornerstone of American financial life, is causing even deeper concern. An overwhelming 73 percent of respondents said it’s a bad time to buy a home, while only 27 percent believe it’s a good time. That’s a modest improvement from September 2024, when a mere 19 percent felt it was a good time to buy and 81 percent thought otherwise. Still, the numbers indicate that most Americans are staying on the sidelines, wary of making one of life’s biggest purchases.
Michelle Griffith, a luxury real-estate broker with Douglas Elliman in New York City, summed up the sentiment in an interview with Fortune: "The reality is that buying into the market, especially in Manhattan or prime Brooklyn, still requires a significant amount of cash upfront. Inventory is tight and competition is high, so the cost of the property itself is what keeps most buyers on the sidelines."
Numbers from the Federal Reserve Bank of St. Louis back up these concerns. The average price of a home sold in the U.S. during the second quarter of 2025 was $512,800, a slight decrease from the first quarter’s average of $514,200. The median home price showed a similar trend, dropping from $514,000 to $512,800 between the first two quarters of 2025. While these are only modest declines, they may signal a cooling in a market that has been red hot for years.
Despite these price shifts, Americans remain divided on where home values are headed next. According to the Fannie Mae survey, 40 percent of respondents believe home prices will increase over the next year, while 22 percent expect them to decrease and 38 percent think they’ll stay about the same. This split reflects the uncertainty that has come to define the current housing landscape.
Interest rates, another major factor in the housing equation, have also seen some movement. As of October 9, 2025, the average rate for a 30-year fixed mortgage stood at 6.34 percent, down slightly from 6.72 percent at the end of October 2024. For context, rates were at their lowest point in January 2021, hitting just 2.77 percent during the COVID-19 pandemic, and peaked at a staggering 18.53 percent in October 1981 during a recession, as noted by UPI. Today’s rates, while high by recent standards, are nowhere near those historical extremes.
When it comes to predicting where mortgage rates will go next, Americans are almost evenly split: 30 percent believe rates will increase over the next year, 32 percent expect them to decrease, and 37 percent think they’ll remain the same. This division underscores the lack of consensus on the direction of the market and the broader economy.
Renters aren’t feeling much relief either. The survey found that renters expect a 6 percent average increase in costs over the next year. When asked about their preferences, 33 percent of respondents said they would choose to rent if given the choice, while 67 percent would opt to buy a home. However, the reality of the market is making homeownership a difficult dream for many. A significant 57 percent of respondents reported that obtaining a mortgage today would be difficult, highlighting the barriers that persist for would-be buyers.
Personal finances are another sore spot. Only 32 percent of those surveyed expect their financial situation to improve over the next year, while 23 percent anticipate things will get worse and 45 percent see no change on the horizon. This lack of optimism is mirrored in other national surveys. For example, the Harvard Caps Harris poll released the week of October 6, 2025, found that 53 percent of registered voters believe the economy is on the wrong track, while the Pew Research Center survey from October 3, 2025, reported that 74 percent of U.S. adults rate the economy as fair or poor.
Despite these worries, there are some bright spots in the data. Employment confidence remains relatively strong, with 75 percent of working respondents saying they are not concerned about losing their job in the next year, compared with 23 percent who are concerned. The September 2025 unemployment rate has not been released due to a government shutdown, but in August it stood at 4.32 percent—a figure that suggests the labor market, while not booming, is at least holding steady. Torsten Slok, Chief Economist at Apollo Global Management, described the labor market as being "at a standstill, where workers are not getting hired or voluntarily changing jobs," according to Fortune.
The Fannie Mae Home Purchase Sentiment Index, which draws on six questions from the National Housing Survey, is designed to track consumers’ attitudes around housing. Fannie Mae itself, officially the Federal National Mortgage Association, plays a key role in the U.S. housing market by buying mortgages from banks and other lenders, thus helping to keep the market liquid.
Looking back, the worst sentiment for home buying in Fannie Mae’s polling history was in September 2023, when 84 percent said it was a bad time to buy a home and only 16 percent thought it was a good time. While attitudes have improved slightly since then, the overall mood remains sour. The buying and selling of homes is still closely tied to interest rates and personal financial optimism, both of which are in short supply these days.
For now, Americans seem to be stuck in a holding pattern—watching, waiting, and hoping for signs of improvement, whether in the economy at large or in their own prospects for homeownership. The path forward remains uncertain, but one thing is clear: confidence in the American dream of owning a home is, for many, on shaky ground.