76% of Americans feel it's a bad time to buy a house: Gallup

view original post

Mortgage rates ticked lower for the first time since March this week, although the 30-year fixed mortgage rate still sits above 7%. Meanwhile, according to a Gallup Poll, 76% of Americans feel it is a bad time to buy a home.

Yahoo Finance Personal Finance Reporter Rebecca Chen joins Wealth! to break down the latest developments for American homebuyers in the current mortgage rate environment.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino

Video Transcript

Well, mortgage rates falling for the first time since mid March this week, this marking the first decrease after five straight weeks, pushing the borrowing costs well above 7%.

So to break down what this means for potential home buyers and owners, we’ve got Yahoo finance reporter Rebecca Chen.

Hey, Rebecca!

Hey, Brad!

So we did see that mortgage rate for a 30 year average fixed rate dropped to 7.09 this week.

And you know, this was a welcoming drop, as you said after five weeks of rising.

But I did want to point out that mortgage rates are still pretty high for home buyers.

In today’s environment, it is still over 7%.

Um so if for a new home buyer who are interested in looking for a home to purchase, they are facing a financing cost that has more than doubled over the last three years, when rates was about 3% in 2021.

Um, so this obviously is a point of sort of struggle for many people who are trying to find that affordability.

And Rebecca, a new Gallup poll finds 76% 76% of people who are in this market here in American say it’s a bad time to buy a home.

So can you tell us more about the sentiment around home buying?

Absolutely.

So we actually been seeing a similar number across different survey.

One of this.

Another survey that came out this week, uh, very similar to this one also said that 80% Americans are not feeling like it’s a good time to purchase a home now.

This came from Fannie Mae, the mortgage lender.

What we really saw was that because of the high interest rate in an environment where home prices are also very high, buyers just don’t feel like now is a good time.

And many of them are taking the wait and see approach.

And this is pretty significant because if you really think about it, let’s say you ask five strangers on the street.

Four of them is going to tell you that now is not a good time to purchase a home.

So apparently so.

It’s quite obvious to us that right now Americans are not feeling very confident in this home buying arena.

And another thing I wanted to highlight from the survey is that this kind of pessimism or lack of confidence in home buying has been sort of consistent.

And the reason why we think it’s consistent and based on talking to a couple of experts in the industry say that because we are so unsure of what’s going to happen next with mortgage rates, obviously we are thinking many home buyers are thinking that, you know, the Fed could cut interest rate next, and they themselves have said so.

But the indications are just not showing when or how much this is going to happen.

So this uncertainty has definitely caused a lot of lack of confidence in home buyers in the US today.

Rebecca Chen Thanks so much for continuing to track everything around the home buying market and breaking this down for us, appreciate it.