A new survey from Bank of America reveals growing uncertainty among U.S. home buyers, marking the highest levels of hesitation since 2023. As mortgage rates continue to climb and home prices remain elevated, prospective buyers are increasingly unsure about entering the real estate market. The findings reflect a shift in consumer sentiment as economic headwinds create new challenges for those hoping to purchase property.

Among the 2,000 participants in the poll, 60% said they were unsure if now is a good time to buy a home—a noticeable increase from 57% in 2023 and 48% the year before. The results suggest that despite a historically active spring season for real estate, rising borrowing costs are prompting many potential buyers to hold off on making major financial commitments. These findings were shared in a report published by Bank of America, the second-largest lender in the U.S.

Matt Vernon, head of consumer lending at BofA, noted that the typical springtime surge in homebuying has stalled. "We're certainly off to a slower start, from a spring season perspective, than we've historically seen," Vernon said in an interview with Reuters. He explained that the uncertainty surrounding mortgage rates has cooled what is normally a robust period for housing activity, as buyers become more cautious amid financial volatility.

Earlier in the year, things looked more promising. In the first quarter, mortgage applications at BofA surged by 80%, driven by falling bond yields and greater housing inventory, which offered buyers a glimmer of hope. However, that momentum has since faded as mortgage rates began to track higher alongside 10-year U.S. Treasury yields. Concerns over the Trump administration’s economic strategies, including trade tariffs, and fears over the country's fiscal health have added to the rate volatility, unsettling the housing market.

Despite these challenges, 52% of surveyed home shoppers still believe the market is in a better place than it was a year ago. Yet many of them are holding out for more favorable conditions, with 75% anticipating that both home prices and interest rates will decline—up from 62% in 2023. This growing segment of “wait-and-see” buyers underscores how expectations of future market corrections are influencing today’s sluggish pace of transactions.

Vernon concluded that mortgage rates lingering between 6% and 7% have started to feel like the new normal for many consumers. “They are looking to be opportunistic for rates and prices to come down,” he said, emphasizing that while demand is there, confidence is lacking. As long as economic uncertainty persists, both buyers and lenders will need to navigate a landscape shaped by cautious optimism and elevated financial risk.