According to Fannie Mae’s September 2025 Home Purchase Sentiment Index, using data from the National Housing Survey, only 32% of respondents said the economy is on the “right track,” compared to a striking 67% who believe it’s going the “wrong track.” These numbers have shifted little during the past year, signaling a stubborn lack of faith in the nation’s economic trajectory, and the “wrong track” percentage ticked up from 64% in August. The steady majority express pessimism about the economy reflects ongoing turbulence from inflation, high borrowing costs, and the continued impacts of global events on U.S. households.

This broad-based skepticism transcends the headline figures. Just 32% of consumers expect their personal finances to improve over the next year, while 23% anticipate things will get worse. Most people—45%—expect little change, which aligns with a record high share (77%) saying their household income has remained about the same as it was a year ago. Only 14% report significantlyhigher income, suggesting that wage gains are failing to keep pace with higher living costs and financial pressures, and yet only 8% report significantly lower income, indicating stability.

Apollo Global Management Chief Economist Torsten Sløk weighed in on another explanation of the economy’s stagnancy on Tuesday, noting both the hiring rate and the quits rate are low, even at recessionary levels, with a declining number of job openings, rising unemployment, and slower job growth, to boot.

“The bottom line is that the labor market is at a standstill, where workers are not getting hired or voluntarily changing jobs,” Sløk wrote.

A bad time to buy

For aspiring homeowners, the outlook is especially grim. When asked whether it’s a good time to buy a home, just 27% said yes, while a resounding 73% think it’s a bad time. The net share of respondents who view buying conditions as favorable fell two percentage points month-over-month to negative 46%—a level that has persisted since the summer.

Homebuyers’ attitudes toward the housing market today stem from stubbornly high mortgage rates and home prices. During the pandemic, buyers enjoyed sub-3% mortgage rates, which ushered in a wave of first-time homeowners. But by late 2023, mortgage rates had peaked at 8%, and today still remain near in the 6% range. And even a 0% mortgage rate wouldn’t make housing affordable for Americans in several major metro areas.

Still, home prices are “the bigger hurdle,” Michelle Griffith, a luxury real-estate broker with Douglas Elliman based in New York City, previously told Fortune. Indeed, 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,” Griffith said. “Inventory is tight and competition is high, so the cost of the property itself is what keeps most buyers on the sidelines.”

Recent HPSI data confirms Americans’ skepticism. Throughout 2025, the portion of those saying it’s a bad time to buy has hovered around 70%, several times higher than the share who feel now is a good time. Persistently rising home prices and steep mortgage rates have contributed to these negative perceptions, making affordability an ever-greater challenge for most buyers.

Still a seller’s market

In stark contrast to buyers, home sellers remain moderately optimistic. Fannie Mae found that 57% believe it’s a good time to sell their home, with only 41% saying it’s a bad time. This sentiment has declined compared to the previous year, where the net share of those seeing it as a good time to sell topped 30%; September’s figure stands at just 17%. Still, the “good time to sell” contingent outnumbers the buyers—reflecting continued seller’s market dynamics, even as perceptions soften.

Looking ahead, 40% of survey participants expect home prices to rise in the next 12 months, while 22% believe they’ll fall, and 38% foresee stability. The net share predicting price increases is 18%—unchanged from August. Meanwhile, opinions are split on mortgage rates, with roughly a third expecting rates to go down and another third bracing for further increases. Notably, just 2% now believe mortgage rates will decline—down five percentage points from the previous month—indicating that expectations for relief on borrowing costs remain low.

To be sure, there are some subtle signs the housing market could be shifting toward favoring buyers. Mortgage applications have slightly increased, and home prices are starting to plateau or even drop in some markets. 

“For prospective buyers who have been waiting on the sidelines, the housing market is finally starting to listen,” First American chief economist Mark Fleming wrote in an Aug. 29 First American post. Even if that’s true, Fannie Mae’s survey shows American homebuyers still feel as if the market isn’t in their favor.

Plunging into rentals

Outside of the ownership market, the survey indicates renters believe costs will climb, with consumers expecting a 6% average increase in rental prices over the year ahead—a 1.1 percentage-point monthly jump. Employment confidence remains solid, with 75% of working respondents not concerned about job loss in the next year.

The survey also found a slight rise in renting preference: if moving, 33% would choose to rent, up one point, while 67% would opt to buy. Additionally, 57% report that obtaining a mortgage today would be difficult—up slightly from the prior month—further confirming the affordability squeeze.

The Fannie Mae data points to a sustained period of uncertainty and challenge for Americans. With most consumers wary about both the broader economy and their personal financial prospects, and with homebuying seen as increasingly out of reach, it is clear that deep anxieties about the nation’s financial trajectory are shaping everyday decisions and dampening optimism as fall gets underway.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.