Lately, we’ve seen a notable dip in overall US consumer confidence, hitting a seven-month low. Interestingly, while folks are feeling a bit better about their current situation—reflected by the present-conditions index rising nearly 7 points to 121—there’s more caution when looking ahead, with the expectations gauge falling about 6 points to 68. That level has often signaled recession risk in the past. Early in Q3, employers trimmed 23,000 jobs and the unemployment rate moved up to around 4%. It’s worth noting, though, that this was mostly because people left the workforce, not because hiring picked up. Despite this softer outlook, homebuying expectations eased only slightly, and have actually kept climbing, with about 61% of consumers still expecting interest rates to go higher. With federal policymakers holding rates steady and markets not pricing in much near-term relief, it looks like borrowing costs for buyers will remain elevated through the end of the year. With over three decades of experience helping clients navigate these kinds of market shifts, I know how critical clear communication and realistic expectations are for both buyers and sellers.
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