Gallup’s poll shows just how much people’s view of the housing market has soured because of surging mortgage rates, stubbornly rising prices, and an extremely small number of homes available for purchase. It’s all left buyers to stretch their budgets even farther in order to afford increasingly expensive monthly payments, if they can even find anything to purchase. “Americans’ much more negative assessments of the current housing market may also keep them from looking to buy, which could lead to a slowdown in home sales,” Jeffrey M. Jones, senior editor at Gallup, said in an analysis of the data. “If that happens, it would reduce the demand for houses and could lead to a decline in home values.” While Jones and others predict rising mortgage rates will restore balance to what’s been an extreme seller’s market thus far, they hadn’t translated into lower prices as of March, when price increases continued to rise at record speeds, according to CoreLogic. One mitigating factor is an increasing number of homebuyers are paying with cash, making them immune to higher borrowing costs. In March, all-cash sales accounted for 28% of buyers, according to the National Association of Realtors, up from 25% in February and 23% in March 2021. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
