Consumer confidence in the US slipped to its lowest level in seven months by mid-Q3. Interestingly, while most people felt a bit more secure about their present circumstances—reflected by a 7-point increase in the present-conditions index to 121—their outlook for the months ahead dimmed. The expectations gauge dropped 6 points to 68, a number that traditionally signals growing recession risk.
Early in Q3, we saw 23,000 jobs cut and unemployment rise to about 4%. But rather than a hiring surge, this shift was mostly due to people stepping out of the labor force. Even with these economic jitters, homebuying expectations remained surprisingly steady—only easing slightly, and in fact, continued to rise. About 61% of buyers still believe interest rates will keep climbing.
With the Fed holding rates steady and the market showing little hope for near-term relief, borrowing costs don’t look ready to budge before year-end. For anyone considering a move—whether you’re a first-time buyer, ready to upsize, or thinking about downsizing—it’s a time for clear-eyed planning, not panic. After 25 years guiding clients through all kinds of markets, I know that real estate success is about adapting to change, staying informed, and crafting the right strategy for your next step.
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