Americans Grow More Gloomy on the Economy

Economic pessimism is deepening across the U.S., with new data from Fannie Mae showing that nearly 70% of Americans think the economy is headed in the wrong direction. 73% believe it’s a bad time to buy a home, reflecting widespread unease as fall begins.

Fannie Mae’s September 2025 Home Purchase Sentiment Index, based on the National Housing Survey, found that just 32% of respondents believe the economy is on the “right track,” while 67% say it’s on the “wrong track,” up from 64% in August. The data points to persistent concerns about inflation, high borrowing costs, and global instability weighing on U.S. households.

Only 32% of Americans expect their personal finances to improve within a year, compared with 23% who foresee a decline. Most—45%—anticipate little change. Roughly three-quarters say their income is about the same as last year, while only 14% report earning significantly more.

Apollo Global Management Chief Economist Torsten Sløk noted that both the hiring and quits rates are at “recessionary levels,” with fewer job openings, rising unemployment, and slower job growth. “The bottom line is that the labor market is at a standstill, where workers are not getting hired or voluntarily changing jobs,” Sløk said.

Homebuying sentiment remains grim. Only 27% say it’s a good time to buy, while 73% disagree. High mortgage rates—still hovering near 6%—and steep prices have made ownership increasingly unattainable. “Buying into the market especially in Manhattan or prime Brooklyn still requires a significant amount of cash upfront,” said Douglas Elliman broker Michelle Griffith.

By contrast, 57% of homeowners think it’s a good time to sell, though that optimism has waned from last year. Renters, meanwhile, expect a 6% rise in rental costs over the next year. Altogether, the data paints a picture of Americans grappling with economic uncertainty and fading confidence in the nation’s financial future.