Americans Losing Confidence in Housing Market Under Trump
Americans are increasingly skeptical about the housing market as mortgage rates and home prices continue their upward trend. A new Federal Reserve Bank of New York survey reveals that households now expect 30-year mortgage rates to hit 7% within the next year—dashing hopes for a more affordable market.
Why It Matters
- Mortgage Rates on the Rise: Initial predictions of a 5% mortgage rate this year have been revised, with experts now expecting rates to stay between 6% and 7% through 2026.
- Homeownership Dream Fading: The percentage of renters who believe they will ever own a home dropped to 33.9%, a significant decline from 40.1% last year.
- Rents Are Soaring: Households expect rent increases of 8% in the next year, up from 7.1% in 2024.
Housing Market & Experts: What’s Driving the Housing Crisis?
Real estate and financial experts point to several key factors affecting housing affordability:
- High Interest Rates: “As interest rates normalize, affordability has plummeted,” says Alan Chang, title and escrow expert.
- Beyond Just Mortgage Costs: “People are realizing that homeownership isn’t just about mortgage payments—property taxes, insurance, and maintenance are also skyrocketing,” says Kevin Thompson, CEO of 9i Capital Group.
- Market Uncertainty: “Trump’s policies on tariffs and immigration are spooking homebuilders,” warns Michael Ryan, finance expert.
What’s Next? Will Housing Costs Improve?
- Home Prices Still Rising: Americans expect home prices to increase by 4% over the next year.
- More Homes on the Market: Inventory is up 17% year-over-year, offering buyers slightly more options.
- Uncertain Economic Outlook: “With affordability and availability hurdles, first-time buyers are facing significant challenges,” says Noelle Tassey, CEO of Redy.
With housing costs soaring and mortgage rates stuck at high levels, is homeownership slipping further out of reach? Stay tuned for market updates.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].