U.S. News and World Report: Homebuyers Still Waiting for Lower Rates

(Image courtesy of U.S. News and World Report; Breakout image courtesy of Jan van der Wolf/pexels.com)

U.S. News and World Report, Washington, D.C., released its third annual Homebuyer Sentiment Survey, finding that 80% of potential homebuyers report waiting for mortgage rates to drop before buying a home this year.

That’s an increase from previous surveys conducted in 2023 and 2024, when roughly two-thirds of respondents said they wanted to wait out rates.

Three-quarters of respondents note having put off buying a home in 2024, with the intention of waiting for rates to fall. That’s flat from the previous year’s survey, and only 37% regret putting off their purchase.

Twenty-five percent of those who report wanting to wait out rates want to see them fall below 5%, a significant drop from current rates. About 60% said they would consider asking for a mortgage rate buydown.

However, 57% believe the housing market will improve this year, with some splits based on politics and economic views.

Almost all–92%–are at least somewhat stressed about buying a home this year, including 24% who are “extremely” stressed.

Nearly two-thirds, or 63%, are considering climate risk when thinking about the location of their home purchase. And, 46% believe they will have a hard time finding affordable home insurance due to climate risk.