A fragile financial safety net
The data showed a growing fragility in household finances. Over a third of homeowners reported less than $1,000 in emergency savings, a marked increase since January. Twenty-seven percent had less than $500, or nothing at all, set aside for emergencies.
Despite the Fed’s move, 77% of homeowners still viewed homeownership as a key path to building wealth, and 60% said home equity offered security. Yet, only 25% believed 2026 would be a good year to buy a home, and 59% said they would not consider purchasing until 30-year mortgage rates dropped to 6% or lower.
Similarly, vast majority of Americans are still convinced it’s a bad time to buy a home, according to the latest Fannie Mae National Housing Survey. Seventy-three percent of respondents said September was a bad time to buy a home, up from 72% the previous month.
Meanwhile, for clients who are ready, with good credit, a down payment, and a housing market that meets their needs as well as a long-term horizon, Brian Peardon, private wealth advisor at BridgePort Financial Solutions says he leans toward buying now with hedges like rate locks and refinancing optionality for a mortgage.
Fed’s impact on mortgage rates
Industry leaders have echoed homeowners’ doubts. “There’s this market perception that the Fed controls mortgage rates. The Fed does not control mortgage rates. The Fed merely sets short term rates. The market controls longer rates,” Glen Weinberg, managing partner at Fairview Commercial Lending, told Mortgage Professional America.