Potential home buyers are getting discouraged by rising mortgage rates and home prices, according to a survey released on Monday by the New York Federal Reserve.
U.S. consumers expect mortgage rates to increase substantially over the next several years, with households on average projecting rates of 6.7% a year from now and 8.2% in three years, the survey shows.
The average probability of buying a home if a household moved over the next three years dropped sharply to 60.7% from 68.5% in 2021, marking the first decline since the annual housing survey started in 2014.
