- 70% of Americans fear a housing market crash as high mortgage rates and prices persist.
- Trump’s trade policies and tariffs are adding to economic anxiety, especially around housing.
- Mortgage rates remain stuck above 6%, keeping both buyers and sellers on the sidelines.
As the spring homebuying season picks up, the mood? It’s more anxious than optimistic. A growing number of Americans are worried the housing market isn’t just cooling—it’s on the edge of something worse.
Recent surveys show mounting concern over rising mortgage rates, soaring home prices, and a general sense that the market might not be as stable as it looks on the surface. It’s not just chatter either. The numbers show sentiment is slipping.
Trump’s Housing Plan Meets Reality
This isn’t great timing for President Donald Trump, who came into office promising lower rates, cheaper housing, and better affordability across the board. But so far? Not quite.
A fresh survey from Clever Real Estate says 72% of Americans think Trump’s tariff-heavy trade policies will hurt the economy. And 81% say they’re worried about the impact of those tariffs—and maybe even a full-blown trade war.
That same report? It says 70% of people fear a full-on housing market crash. And a third—32%—are straight-up worried they won’t be able to cover their housing payments if the economy keeps wobbling.
High Rates, High Prices, Low Hope
“There’s no doubt people are stressed,” says Joel Berner, a senior economist at Realtor.com. “Mortgage rates are still high, and Trump’s trade policies are keeping inflation sticky—which just keeps rates high.”
Despite the gloom, Berner doesn’t think a full collapse is likely just yet. There’s still demand. A lot of it, actually. Just… not from people who can afford to jump in right now.
“If prices dropped, we’d probably see a big spike in buying,” Berner explains. “There are a lot of would-be households just waiting for something to give.”
But affordability is still the monster in the room. A recent Realtor.com report says Gen Z and millennial household formation was 1.6 million short last year. That’s a huge number—and most of it comes down to a lack of affordable homes.
Sales Numbers Look Rough
Even without new tariffs stirring the pot, the housing market’s been dragging for a while now. Mortgage rates are up, homes are too expensive, and sales have been… well, weak.
In January, home sales were at an annual rate of just 4.7 million. That’s barely above the post-2008 crash numbers. Wells Fargo economists say it’s not a recession thing—it’s a cost-of-living thing.
“Affordability is the real weight,” they wrote in a note. “High prices plus high mortgage rates? Not exactly a winning combo.”
Still, prices aren’t backing down. The Case-Shiller index showed a 4.1% annual price increase in January—even with fewer buyers in the game.
Consumers Aren’t Feeling Great
Fannie Mae’s latest homebuying sentiment index dropped again in February. Not because people think prices will go down—but because most don’t believe rates will.
Only 24% of folks said now’s a good time to buy. And while 62% think it’s still a decent time to sell, more people are getting worried about their personal finances too. The share of Americans who expect their financial situation to get worse jumped from 15% to 22%, the highest it’s been in over a year.
Mortgage Rates Are Stuck—and Expectations Aren’t Helping
Rates haven’t budged much since the Fed started trimming back policy rates late last year. Hopes that this would mean cheaper mortgages? Mostly dashed.
30-year fixed mortgage rates are still sitting around 6.67% as of late March, and they’ve been above 6% since late 2022. According to Freddie Mac, they’ve rarely dipped below that—if at all.
The New York Fed says people are expecting mortgage rates to hit 7% by next year—and stay there for the next three. Not exactly optimistic.
Realtor.com’s forecast still hopes for low-6% by the end of 2025, but Berner isn’t sugarcoating it: “High-6s or even low-7s aren’t off the table,” he admits.
And as long as that’s true, the market’s stuck. Sellers don’t want to let go of their low-rate mortgages. Buyers are limited in what they can afford. Nobody moves.
So, Where Does That Leave the Market?
In short—stuck. Between unaffordable homes, sticky mortgage rates, and economic uncertainty stirred by policy shifts, the housing market is struggling to build real momentum.
Some buyers are waiting, some are priced out, and a whole lot of people are hoping for change… but preparing for the worst.
