Americans Are Losing Faith in Trump's Ability To Fix the Housing Market—With 70% Fearing an Impending Crash
A growing number of Americans fear that an already weak housing market is teetering on the verge of collapse, sending a grim warning sign as the spring homebuying season begins in earnest.
Several recent surveys show that anxiety is growing over the future of mortgage rates, home prices, and the overall stability of the housing market.
The downturn in consumer sentiment might come as unwelcome news to President Donald Trump, who campaigned on plans to lower mortgage rates, reduce inflation, and boost home affordability.
Yet Trump's trade policies have left 72% of Americans believing tariffs will hurt the U.S. economy, with 81% worried about the impact of tariffs and potential trade wars, according to a new survey from Clever Real Estate, a St. Louis-based real estate company.
That survey found 70% fear an impending housing market crash—while 32% fear they won't be able to afford housing payments as a result of weakness in the economy.
'There's no doubt that the current state of the housing market is a source of anxiety for prospective buyers and sellers,' says Realtor.com® senior economist Joel Berner. 'Buyers are faced with high mortgage rates, which are poised to remain high due to the inflationary nature of the Trump administration's trade policy.'
Still, Berner does not view a housing market crash as likely in the near future, because for now, demand for homes remains strong, even among those currently unable to afford them.
'If home prices did drop, we would expect a flurry of buying activity from the pent-up households in the nation that are waiting to form, which would buoy the market naturally,' he says.
A recent report from the Realtor.com economic research team estimates that Gen Z and millennial household formation fell short of demographic expectations by 1.6 million last year, due in large part to the lack of affordable housing.
Although Trump's tariffs are the latest source of fresh anxiety, consumer concerns about the housing market likely stem mainly from longstanding factors: elevated mortgage rates, high home prices, and ongoing weak home sales figures.
In January, total home sales were at an annual pace of just 4.7 million, only modestly above the weak rate seen after the Great Recession between 2008 and 2010, Wells Fargo economists wrote in a recent research note.
'The tepid pace of home sales can not be blamed on a recession,' the Wells Fargo economists wrote. 'Rather, the main factor weighing on residential activity continues to be adverse affordability conditions. In addition to high mortgage rates, home prices continue to rise.'
Nationally, home prices continue to rise on an annual basis despite the lack of buyers, with the Case-Shiller home price index up 4.1% in January from a year earlier.
Fannie Mae's latest monthly index of homebuying sentiment declined in February, driven largely by consumers' increased skepticism that mortgage rates will decline in the next year.
The share of consumers who said it is a good time to buy a home inched up to a still-weak 24%, while the share who say it is a good time to sell dipped to 62%.
The most troubling figure from the Fannie Mae survey was the share of respondents who expect their personal financial situation to get worse in the next 12 months, which jumped from 15% in January to 22% in February, the highest level in over a year.
Mortgage rates remained persistently high after the Federal Reserve began cutting its policy rate last fall, dashing hopes that easier monetary policy would bring relief to the housing market.
Mortgage rates have now stayed above 6% since September 2022, remaining mostly between 6% and 7% with a few peaks above that range, according to Freddie Mac.
Average rates of 30-year fixed home loans last stood at 6.67% for the week ending March 20.
A recent survey of consumer expectations from the Federal Reserve Bank of New York found that households expect mortgage rates to rise to 7% a year from now, and to remain that high in three years, both record-high expectations for the survey.
The Realtor.com economic research team's 2025 forecast projected that mortgage rates would fall to the low-6% range by the end of the year, although Berner admits high-6% or low-7% rates 'are certainly not out of the realm of possibility.'
'Mortgage rates have seriously slowed the housing market as many would-be sellers are locked into the low rates they got a few years ago and are unwilling to move, and they constrain the budgets of would-be buyers,' says Berner.
How to Find Temporary Housing—Your Home Between Homes
Evade Eviction With These Tips on Tenant Law
Need Cash? How to Rent Out a Room in Your House
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
18 minutes ago
- The Hill
Van Hollen on Abrego Garcia's return to US: ‘A victory for the Constitution'
Sen. Chris Van Hollen (D-Md.) celebrated the return of Kilmar Abrego Garcia, a Maryland man who was mistakenly deported and detained in El Salvador's CECOT prison, calling it 'a victory' for the rule of law. The Trump administration doubled down on the deportation, accusing Abrego Garcia, who illegally immigrated to the U.S. from El Salvador in 2011 but was later protected from removal to his home country, of having gang ties. His legal team has denied these allegations and urged for his return to the U.S. On Friday, Attorney General Pam Bondi, after months of fighting against Abrego Garcia's return in court, announced that he was transported back to U.S. soil to face criminal charges stemming from a 2022 traffic stop in Tennessee. 'This is a victory for due process. It's a victory for the Constitution. It should not have taken this long. I mean … the Trump administration dragged its feet for a very long time and ignored a 9 to 0 order from the Supreme Court,' Van Hollen said during a Friday appearance on MSNBC. 'But it's important that Abrego Garcia now come home and have his due process rights upheld in a court of law,' he added. The Maryland lawmaker visited Abrego Garcia while he was detained overseas to check on his well being and champion his release from El Salvadoran custody, which White House officials originally said would never happen. Van Hollen on Friday said that the court battle Abrego Garcia will now face should have been launched prior to his removal. 'If they're now going to take this case into the courts, as they should have, you know, from the beginning, before they just took him off the streets of Maryland and deposited him in a gulag in El Salvador, then that is — that is the due process that we've been fighting for,' he said. 'And, again, not just for his case, but for others. And — and I think that Americans understand that everybody deserves to have their rights, you know, respected. That's what the Constitution is for.' Abrego Garcia's attorney said on Friday that the criminal case is just another attempt to persecute his client. 'This shows that they were playing games with the court all along. Due process means the chance to defend yourself before you're punished, not after. This is an abuse of power, not justice,' attorney Simon Sandoval-Moshenberg previously told The Hill in a statement. 'The government should put him on trial, yes—but in front of the same immigration judge who heard his case in 2019, which is the ordinary manner of doing things, 'to ensure that his case is handled as it would have been had he not been improperly sent to El Salvador,' as the Supreme Court ordered.'
Yahoo
21 minutes ago
- Yahoo
North Jersey teen wins award for his workshop to teach money awareness to other students
Financial education and budgeting for kindergartners? Yes, it's never too soon to start, said Bergen County Technical High School junior Danny Jang. The Fort Lee teen's nonprofit Futures Financials Inc.'s "money awareness" workshops for students earned him a "Best Educator" citation from the professionally dominated international Money Awareness and Inclusion Awards on May 28. "Teens graduate without knowing how to open a bank account, budget their paycheck or invest for the future," Danny said. "One in four Americans after the age of 25 still don't know how to invest, how to budget efficiently, which I think is insane. Our nonprofit is built around a simple but urgent mission: make financial education accessible, engaging and everywhere." As a freshman, Danny joined the school's Financial Literacy Club to get some community service hours. Club members visited Bergen County libraries and taught children financial literacy. But after his freshman year, Danny said, he asked himself, "How could I make this club more engaging and fun?" The first answer was team teaching. "We would teach for a day, acting more like a brother and sister relationship than a teacher and lecturer," Danny said. "Then we started collaborating with a lot of organizations on the slide shows and financing." In spite of a large membership and strong teacher support, Danny said, the school eventually had to bow out as a sponsor over concerns about liability and activities outside of school that were considered "too broad for a student-run club." With a group of students, Danny formed Futures Financials Inc. last year to carry on their money awareness goals. "Rather than let the work stop there, we formalized our efforts as a nonprofit," Danny said. "This allowed us to continue and grow — teaching hundreds more students, appearing on the news, testifying in Trenton, and helping students start new chapters in schools and communities more open to this initiative." Among their early sponsors was Next Gen Personal Finance founder Tim Ranzetta, who provided grant funding and tech support. "I'm an entrepreneur with a passion for education," Ranzetta said. "After witnessing firsthand the multigenerational impact that a personal finance course could have, I wanted to share with a wider audience. Danny's organization is a great example of what we see happening across the country, a movement focused on ensuring all students in high school benefit from a personal finance course." In order to graduate from high school in New Jersey, students are required to complete 2.5 credits, roughly half a year, on financial, economic, business and entrepreneurial literacy. This includes the fundamentals of debt, budgeting, saving and investing. However, Danny said, the requirement often loses its impact when incorporated into other subjects such as social studies, and needs to be more separate and specific. Cofounder Wesley Leung testified on behalf of the group before the New Jersey Senate in favor of Bill S3497 (Assembly Bill A4764) that would extend the requirement to middle school grades six to eight. Meanwhile, Futures Financials continues to expand its repertoire to fit the needs of various student groups. "We tailor-make a version of what we teach depending on what the kids tell us about how they live," Danny said. "In some cases, the kindergarten or first grade classes come up to the fifth grade class and we teach them together. Sometimes what fifth graders don't know, a second grader might." Regardless of age, Danny said, "money enters the picture pretty early, I don't care how modest the income." "Buy me an ice cream, buy me a video game," Danny said. "The kid is always going to be asking for stuff, and the parents are going to respond in different ways." Financial concerns shift in high school as students prepare to enter college, Danny said. "They have no clue about college financial aid, scholarships, stipends, loans," Danny said. Team members follow up with a virtual handout to parents that can function as a game to educate the entire family. "Not only does it help the children, it also helps parents be more engaged about teaching their children," Danny said. "They learn about it in a fun manner. And that's my goal, for the parents to be aware of what their students are learning. Discussion is the good part." For more information on Futures Financials Inc., visit This article originally appeared on North Jersey teen's money awareness course for students wins award
Yahoo
29 minutes ago
- Yahoo
Is your money safe in a bank during a recession?
As scary as they can be, recessions are normal — and temporary. But that doesn't make them any less painful. With the possibility of a recession dominating headlines in recent months, it's no surprise if you're concerned about the security of your money. You may even wonder if your money is safe in a bank during a recession. Two pieces of good news may help calm your fears: First, according to JPMorgan Research, the likelihood of a recession has dropped from 60% to 40% in recent weeks. Second, even if a recession does happen, your money is safe in a bank. Continue reading to learn how banks protect your cash, what happens when they fail, and how you can keep your money safe during a recession. Banks are generally safe at any time, including during a recession. In 1933, following the Great Depression, the Federal Deposit Insurance Corporation (FDIC) was created to promote consumer trust in banks. The FDIC protects insured bank deposits of up to $250,000 per customer, per insured bank, per ownership category, in case of bank failure. FDIC insurance doesn't apply to all account types; it only covers certain deposit accounts, such as savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). Money invested in stocks, bonds, mutual funds, and other investments isn't covered. Bank failures are unlikely, but they do happen on occasion, and especially during a recession. While there has only been one bank failure in 2025, there were 157 in a single year following the Great Recession. But even when banks fail, FDIC insurance protects bank customers in one of two ways: The FDIC may open a new account for you at an insured bank with a balance equal to your insured balance at the failed bank. The FDIC may send you a check in the amount of your insured balance at the failed bank. According to the FDIC's website, it has historically paid customers within a few days of failed bank closures. And since the creation of the FDIC, no depositor has ever lost insured funds. Credit unions and banks are both safe during a recession, provided they're both federally insured. Like banks, credit unions offer insurance on deposits of up to $250,000. Though FDIC insurance doesn't apply to credit union deposits, credit unions are insured by the National Credit Union Administration (NCUA), which provides similar coverage. While banks and credit unions provide the same amount of financial protection during a recession, credit unions have characteristics that may make them feel safer. For example: Credit unions are member-owned. Unlike banks, credit unions are nonprofit organizations and don't have to cater to shareholders. This generally means they put members' needs first and offer highly personalized customer service, which can provide some peace of mind during financially unstable times. Credit unions tend to have fewer fees, more affordable loans, and higher savings rates. Because credit unions are nonprofit entities, they can pass profits on to members in the form of lower fees and higher savings rates. These extra savings can go a long way during a recession, when members may be looking to cut costs wherever they can. Credit unions take less risk compared to banks. Because banks operate for a profit, they're generally willing to take on more risk in the pursuit of bigger returns. For example, the majority of subprime mortgages in 2006 were issued by banks, not credit unions. Credit unions, meanwhile, are more risk-averse, which can provide a sense of stability for their members. You can keep your money safe during a recession by keeping it in the right place. Here are some tips to make sure your cash is secure if and when a recession hits: Make sure you bank with insured institutions. FDIC or NCUA insurance protects your deposits as long as your bank or credit union is backed by one of these organizations. To confirm your bank is FDIC-insured, use the FDIC's BankFind Suite tool. To check a credit union's NCUA status, use the NCUA's Credit Union Locator tool. Get extra FDIC coverage. If you have a lot of money saved, $250,000 worth of insurance may not be enough. Luckily, some banks allow you to insure deposits beyond the standard $250,000 by using something called reciprocal deposits. This system spreads your money between multiple partner banks, each of which can insure up to the standard limit. Alternatively, you can insure funds beyond the $250,000 maximum simply by opening accounts at multiple banks. Build an emergency fund. An emergency fund is always important, but it's particularly crucial during a recession. Having cash on hand in a safe, high-interest account like a high-yield savings account gives you extra comfort and protection if an emergency does happen. Read more: Recession-proof your money: How to protect your savings, investments, mortgage, and more Yes, keeping your money in the bank during a recession is generally a good idea. You can also keep your money in a credit union. As long as your bank or credit union is insured by the FDIC or NCUA, your deposits will be safe up to federal limits. Both banks and credit unions are safe places to keep your money during a recession. Banks are insured by the FDIC, and credit unions are insured by the NCUA. Both types of financial institutions insure up to $250,000 per depositor, per account category. Both banks and credit unions are safer than keeping physical cash, which can get lost, stolen, or damaged. Generally, the government can't take money from your bank account in a crisis. However, it may be able to garnish wages and seize your tax refund if you owe outstanding debt, such as federal student loans.
