US Homebuyers Face Uncertainty as Mortgage Rates Surge

CHARLOTTE, N.C., May 28, 2025 /PRNewswire/ — A report from Bank of America reveals that 60% of homeowners and potential homebuyers are uncertain about whether now is a good time to purchase property. This marks the highest level of uncertainty recorded in three years, up from 48% in 2023.

The increase in uncertainty comes as rising mortgage rates have made many cautious. Bank of America’s Homebuyer Insights Report shows that while 52% of respondents feel the market is better than it was last year, 75% are holding off on purchases, waiting for prices and rates to decrease.

“With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them,” said Matt Vernon, Head of Consumer Lending at Bank of America. “A majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action.”

The survey, conducted between March and April 2025, also highlighted that Gen Z buyers are taking unique steps to secure homeownership. About 30% have taken extra jobs to save for down payments, and 22% are purchasing homes with siblings. Concerns over severe weather are significant, with 62% of participants worried about climate impacts on their buying decisions.

Bank of America notes the dynamic nature of the housing market, as potential buyers adjust their expectations and plans in response to economic conditions and interest rates. The report points to a trend where many are seeking homes in safer areas, reflecting a growing priority for climate resilience in home buying.

Overall, the survey involved 2,000 respondents and carries a margin of error of ±2.2%. As the landscape evolves, potential homebuyers are closely watching for signs of a more favorable market.