Robert Besser
31 May 2025

NEW YORK CITY, New York: Rising mortgage rates and economic uncertainty are leaving many Americans unsure about whether to buy a home—just as the typically busy spring housing season gets underway.

A new Bank of America survey found that 60 percent of U.S. consumers are uncertain about market conditions, the highest level of doubt since 2023. The survey polled 2,000 people and reflects a growing hesitation as interest rates climb and price volatility persists.

"We're certainly off to a slower start, from a spring season perspective, than we've historically seen," said Matt Vernon, head of consumer lending at Bank of America.

The findings contrast with a more active first quarter, when mortgage applications surged 80 percent, spurred by rising inventory and a temporary dip in long-term bond yields.

However, since then, mortgage rates have increased alongside U.S. Treasury yields, driven in part by market unease over the Trump administration's fiscal and trade policies. Many buyers are now hitting pause.

"Despite buyers having more options and better affordability compared to last April, sales fell over the year," said Kara Ng, senior economist at Zillow. "The likely culprit was macro uncertainty, as many households didn't know what was next for their jobs, investment portfolios, or budgets."

Still, 52 percent of respondents said the market felt better than a year ago. And 75 percent believe home prices and interest rates will fall—up from 62 percent in 2023—suggesting many are waiting for a more favorable window.

"This continued rate period in the six percent to seven percent range is now becoming a new normal," said Vernon. "They are looking to be opportunistic for rates and prices to come down."