Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Jun 08, 2023 2 min read
Photo illustration of a house for sale
Money; Getty Images

Prospective homebuyers aren’t feeling very confident about purchasing a home in a market plagued by inflation and high mortgage rates, according to new research.

A survey from and research firm Censuswide found that while the majority of home shoppers still hope to make a purchase in the next year, they’re also second-guessing their plans due to a variety of market conditions.

What's hurting homebuyer confidence

Only 7% of surveyed home shoppers say they aren't thinking twice about purchasing a house in the next year. Here are the market conditions causing prospective buyers to second-guess their plans to purchase homes, according to's survey:

  1. Inflation (51%)
  2. Rising interest rates (48%)
  3. Rising home prices (46%)
  4. A potential recession (37%)
  5. U.S. politics (32%)
  6. Rising gas prices (31%)
  7. Geo-political unrest (22%)

Keep in mind

The real estate market hasn’t been leaning in home shoppers’ favor lately. One recent survey shows that nearly two-thirds of Americans looking to purchase a home are putting their plans aside until mortgage rates drop.

But says changing market dynamics could help shoppers to achieve their homeownership goals. The real estate resource site says that in May, home prices grew at the slowest rate in's records dating back to 2016, increasing by .9% year-over-year.

What’s more, listed homes are staying on the market longer before selling, and home price growth is expected to continue cooling, according to These factors should give buyers a bit of an advantage in a challenging market.

More from Money:

Devoting 30% of Your Income to Rent Is Becoming the Norm in the U.S.

9 Best Home Equity Loans of June 2023

As Home Prices Fall, These 5 Cities Are Offering Buyers Big Savings

Get expert advice on personal finance matters. Chat now.