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BofA Report: 60% of Homeowners and Prospective Buyers Uncertain About the Housing Market - A Three-Year High

1. 60% of buyers are uncertain about the homebuying market's current state. 2. 75% expect falling home prices and interest rates, increasing purchasing hesitation. 3. 52% of prospective buyers believe the market is improving since last year. 4. Many Gen Z buyers are taking extra jobs to manage down payments. 5. Concern over severe weather affects homebuying location decisions for 38%.

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Why Bullish?

The article indicates that rising optimism among homebuyers could lead to increased mortgage activities, benefiting BAC's lending services. Similar trends in past housing recoveries saw bank stocks perform well as consumer confidence grew.

How important is it?

The insights reveal consumer trends that indicate potential growth in BAC's lending segments. Positive conditions in the housing market, as suggested in the report, could strengthen BAC's position amidst ongoing economic changes.

Why Short Term?

As potential homebuyers prepare for market shifts, BAC may see a quicker impact on mortgage applications and home equity loans in the coming quarters, affecting short-term revenue cycles.

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Despite Uncertainty, Prospective Buyers Are Cautiously Optimistic About Market Improvements, /PRNewswire/ -- Uncertainty among current homeowners and prospective buyers is at a three-year high, with 60% saying they can't tell whether now is a good time to buy a home or not, compared to 48% two years ago, according to the latest Bank of America Homebuyer Insights Report (PDF), released in coordination with Bank of America Institute's latest On the move analysis. 60% of homeowners and prospective homebuyers say they can’t tell whether it’s a good time to buy a home or not, compared to 57% in 2024 and 48% in 2023. 75% of prospective homebuyers say they expect prices and interest rates to fall and are waiting until then to buy a new home, compared to 67% in 2024 and 62% in 2023. 15% of prospective homebuyers plan to pay for their down payment with a loan from parents or family, compared to 12% of prospective homebuyers in 2024 and 9% of prospective homebuyers in 2023. In 2025, 21% of Gen Z prospective homebuyers reported that they plan to rely on a family loan for their down payment. Despite this, 52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it's better now than it was a year ago. Three out of four (75%) expect home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023. "With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them," says Matt Vernon, Head of Consumer Lending at Bank of America. "As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action." Gen Z compromising in order to buyThe new research also reveals that despite financial hurdles, the dream of homeownership remains a powerful motivator for both Gen Z and Millennials, driving them to make sacrifices in the present and prioritize the long-term financial security a home can provide. For Gen Z and Millennials, three out of every four current homeowners say owning a home is a milestone achievement. The 2025 data shows: 30% of Gen Z homeowners reported that they paid for their down payment by taking on an extra job, compared to 28% in 2024 and 24% in 2023. 22% of Gen Z homeowners reported that they purchased their home with siblings, compared to 12% in 2024 and 4% in 2023. 34% of Gen Z prospective homebuyers would consider living with family or friends while waiting to purchase a home. 21% of Gen Z prospective homebuyers say they plan to pay for their down payment with a loan from parents or family, compared to just 15% of the general population who say the same. Among all prospective homebuyers, this number is up from 12% in 2024 and 9% in 2023. "Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there," says Vernon. "They are finding creative ways to afford down payments and working hard to improve their financial futures."Severe weather is top of mind for homebuyers62% of current homeowners and prospective buyers are concerned about the impact of severe weather and natural disasters when it comes to homeownership, and 73% feel it is important to buy in areas where there is lower risk of these events occurring. Many (38%) have changed their preferred home purchasing location due to the risk of severe weather in the area. Among current homeowners, nearly a quarter (23%) have personally experienced property damage or loss in the last 5 years due to severe weather events. 65% of current homeowners are taking measures to prepare their home for the risk of severe weather. Bank of America Homebuyer Insights ReportSparks Research conducted a national online survey on behalf of Bank of America between March 20 and April 22, 2025. A total of 2,000 surveys (1000 homeowners / 1000 renters) were completed with adults 18 years old or older, who make or share in household financial decisions, and who currently own a home/previously owned a home or plan to own a home in the future. The margin of error is +/- 2.2 percent at the 95 percent confidence level. Select questions allowed respondents to choose more than one answer, resulting in responses that may equate to more than 100 percent.Bank of America InstituteBank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank's proprietary data, from 69 million consumer and small business clients, 58 million verified digital users, $4.3T in total payments in 2024 and $1.2T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.Bank of AmericaBank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.Reporters may contact:Susan Atran, Bank of America   Phone: 1.646.599.3300[email protected] SOURCE Bank of America Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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