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Homebuyer Confidence Plummets to 17%

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  Published in House and Home on Friday, February 13th 2026 at 22:51 GMT by Fox Business
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Saturday, February 14th, 2026 - A pervasive sense of caution has gripped potential homebuyers, according to the latest data from CoreLogic and Rightway Analytics' Real Estate Report. The survey, completed just this week, reveals a startlingly low 17% of registered U.S. voters believe it is currently a good time to purchase a home. This represents a significant drop in confidence and underscores growing anxieties surrounding the state of the nation's housing market.

The findings, released today, paint a picture of an electorate deeply concerned about affordability and economic uncertainty. While the housing market experienced a boom during the early stages of the COVID-19 pandemic, fueled by low interest rates and increased demand for larger living spaces, the tide has decisively turned. The survey highlights that a combined 65% of voters view the current market as either 'bad' (38%) or 'fair' (27%). Only a small minority, that 17%, offer a positive assessment.

Interest Rate Hikes and Inflation - The Double Blow to Affordability

The primary driver behind this negative sentiment is the escalating cost of homeownership. The dramatic increase in mortgage rates over the past few years has severely eroded affordability. In February 2024, the average 30-year fixed mortgage rate stood at 6.96%, as reported by Freddie Mac. This is nearly double the average rate of 3.56% seen in 2020, when the pandemic initially reshaped housing demand. While rates have fluctuated since 2024, they've remained stubbornly high, impacting monthly mortgage payments and overall housing costs.

Compounding the problem is persistent, albeit moderating, inflation. While the inflation rate has fallen from its peak in 2022, the cumulative effect of rising prices across various sectors - from building materials to property taxes - continues to strain household budgets. This creates a challenging environment for prospective homebuyers, who are facing higher borrowing costs and increased expenses in other areas of their lives.

Jason Tomes, president of Rightway Analytics, succinctly summarized the issue: "The cost of buying a home is a big barrier for many, and that's compounded by the uncertainty in the broader economy." This sentiment is echoed by many economists, who point to the complex interplay of factors impacting the housing market. The increased cost of living generally, coupled with fears of a potential recession, are further discouraging potential buyers.

Investment Sentiment Also Weakening

The lack of confidence isn't limited to primary residences. The Real Estate Report also revealed that a substantial 70% of voters consider now a 'bad' or 'fair' time to invest in real estate, suggesting a broader apprehension about the market's future performance. This decline in investment sentiment could have significant implications for the construction industry and related sectors.

Looking Ahead: What Can Be Expected?

The current situation raises several questions about the future of the U.S. housing market. Experts predict that a sustained period of slow growth is likely, with home sales remaining below historical averages. The key to a potential turnaround lies in a combination of factors: a decrease in interest rates, a moderation of inflation, and an increase in housing supply. However, the timing of these developments remains uncertain.

The Federal Reserve's monetary policy will play a crucial role. While the Fed has signaled a willingness to cut interest rates, the pace of those cuts will depend on economic data, particularly inflation figures. Furthermore, increasing the housing supply - through streamlining regulations and incentivizing construction - is essential to address the underlying shortage that has contributed to rising prices.

Finally, demographic shifts and evolving lifestyle preferences are also shaping the market. The increasing popularity of remote work and the desire for more affordable housing options are driving demand in certain regions and for specific types of properties. Understanding these trends will be critical for both homebuyers and investors in the years to come. The current poll demonstrates the urgency of addressing these challenges to ensure a stable and accessible housing market for all Americans.

The CoreLogic and Rightway Analytics survey polled 1,000 registered voters between February 8th and February 12th, providing a snapshot of current market perceptions.