Story perspectives

70% of Americans Fear Economic Downturn, Home Buying Declines

10/8/2025

Center

Americans Doubt Economy

A Fannie Mae survey shows 70% of Americans think the economy is heading in the wrong direction, and 73% feel it's a bad time to buy a home.
Only 32% expect their finances to improve, while 23% foresee a decline.
High mortgage rates contribute to negative buying conditions, with just 2% anticipating a decrease.
Renters expect a 6% rise in rental prices, and 57% find it hard to secure a mortgage.
Black Americans face significant financial challenges, often relying on savings. Economic concerns may influence voter sentiment before the 2026 midterms.

Left

Kashkari Warns AI

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, warns artificial intelligence (AI) data centers may divert investment.
Tariffs under the Trump administration create uncertainty and could shrink the economy by 0.4%.
AI investments could boost GDP to 2% in 2025.
Youth unemployment is 10.5%.
Experts warn the AI boom could displace workers and widen inequality.

History

Historical Context

The Great Recession began in December 2007 and lasted until June 2009, marking the worst economic downturn since the Great Depression. Triggered by the collapse of the housing bubble and risky mortgage-backed securities, it peaked with unemployment reaching 10%. Today, high mortgage rates and rising rents continue to challenge Americans, particularly Black communities, echoing historical economic disparities and influencing voter sentiment ahead of the 2026 midterms.

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Americans Doubt Economy

A Fannie Mae survey shows 70% of Americans think the economy is heading in the wrong direction, and 73% feel it's a bad time to buy a home.
Only 32% expect their finances to improve, while 23% foresee a decline.
High mortgage rates contribute to negative buying conditions, with just 2% anticipating a decrease.
Renters expect a 6% rise in rental prices, and 57% find it hard to secure a mortgage.
Black Americans face significant financial challenges, often relying on savings. Economic concerns may influence voter sentiment before the 2026 midterms.

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