--- title: Here's Why Home Shoppers Are Second-Guessing Their Plans to Buy in the Next Year description: Prospective homebuyers are second-guessing plans to purchase a house due to inflation, rising interest rates and rising home prices. authors: - name: Mary Ellen Cagnassola role: Reporter url: https://money.com/author/mary-ellen-cagnassola/ bio: Mary Ellen (M.E.) Cagnassola is a former Money reporter who specialized in U.S. rent and real estate, with a focus on market trends and affordability. education: Rutgers University, BA Journalism at_money_since: 2021 articles: 205 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-06-08T20:37:33.000Z' modified: '2024-01-10T14:53:39.000Z' section: Housing tags: - News - real estate word_count: 282 canonical: https://money.com/home-shopper-concerns-inflation-mortgage-rates/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo illustration of a house for sale](https://img.money.com/2023/06/News-factors-causing-people-second-guess-buying-home.jpg?crop=0px%2C239px%2C2880px%2C1620px&quality=85) Prospective [homebuyers](https://money.com/homebuyers-all-cash-offers/) aren’t feeling very confident about purchasing a home in a market plagued by [inflation](https://money.com/inflation-financial-hardship-gallup-poll/) and high [mortgage rates,](https://money.com/current-mortgage-rates/) according to new research. A [survey](https://www.realtor.com/research/2023-spring-buyers-survey/) from Realtor.com 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. 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 Realtor.com'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](https://money.com/homebuyers-wait-mortgage-rates-drop/) that nearly two-thirds of Americans looking to purchase a home are putting their plans aside until mortgage rates drop. But Realtor.com says changing market dynamics could help shoppers to achieve their homeownership goals. The real estate resource site says that in May, [home prices](https://www.realtor.com/research/may-2023-data/) grew at the slowest rate in Realtor.com'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 Realtor.com. These factors should give buyers a bit of an advantage in a [challenging market](https://money.com/buyers-sellers-housing-market-pessimism/). [Devoting 30% of Your Income to Rent Is Becoming the Norm in the U.S.](https://money.com/rent-30-percent-income-norm/) [9 Best Home Equity Loans of June 2023](https://money.com/best-home-equity-loans/) [As Home Prices Fall, These 5 Cities Are Offering Buyers Big Savings](https://money.com/homebuyers-wait-mortgage-rates-drop/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-shopper-concerns-inflation-mortgage-rates/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Buying", "item": "https://money.com/home-buying/" }, { "@type": "ListItem", "position": 4, "name": "Here's Why Home Shoppers Are Second-Guessing Their Plans to Buy in the Next Year" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/home-shopper-concerns-inflation-mortgage-rates/#webpage", "url": "https://money.com/home-shopper-concerns-inflation-mortgage-rates/", "name": "Here's Why Home Shoppers Are Second-Guessing Their Plans to Buy in the Next Year", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-06-08T20:37:33.000Z", "mainEntity": { "@id": "https://money.com/home-shopper-concerns-inflation-mortgage-rates/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-shopper-concerns-inflation-mortgage-rates/#breadcrumb" }, "dateModified": "2024-01-10T14:53:39.000Z" }, { "@type": "NewsArticle", "headline": "Here's Why Home Shoppers Are Second-Guessing Their Plans to Buy in the Next Year", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/06/News-factors-causing-people-second-guess-buying-home.jpg?crop=0px%2C239px%2C2880px%2C1620px&quality=85", "width": 1012, "height": 569, "caption": "News-factors-causing-people-second-guess-buying-home" } ], "author": [ { "@type": "Person", "name": "Mary Ellen Cagnassola", "url": "https://money.com/author/mary-ellen-cagnassola/", "@id": "https://money.com/author/mary-ellen-cagnassola/#author", "description": "Mary Ellen (M.E.) 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