The State of the U.S. Housing Market, Explained

U.S. consumers have been pessimistic about the housing market all year and show no signs of changing their opinions.

According to a national housing sentiment survey commissioned by Fannie Mae, only 14 percent of consumers say now is a good time to buy a home—a new low for the survey. But consumer sentiment is just one feature of a landscape where rising inflation and fluctuating interest rates intersect with global events and supply chain upheavals.

How has the housing market changed since COVID-19?

Before the COVID-19 pandemic, the U.S. housing market was strong. Historically low mortgage rates and rising house prices had persisted for years, coinciding with a long period of under-building. The upshot was a market with lots of sales activity and limited supply.But COVID-19 changed that. After initial lockdown disruptions in early 2020, the market quickly rebounded with intensified demand.