{"id":7628,"date":"2025-09-09T04:00:00","date_gmt":"2025-09-09T09:00:00","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=7628"},"modified":"2025-09-09T04:48:51","modified_gmt":"2025-09-09T09:48:51","slug":"homebuyer-stress-in-america-2025","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/homebuyer-stress-in-america-2025\/","title":{"rendered":"Homebuyer Stress in America: 2025"},"content":{"rendered":"\n<article class=\"tomo-article\" itemscope itemtype=\"https:\/\/schema.org\/Article\">\n  <style>\n    \/* Base: inherit site fonts; colors *\/\n    .tomo-article{\n      --green:#0f807d;\n      --ink:#0e1225;\n      --muted:#5b6173;\n      --bg:#f7f8fb;\n      --border:#d1d5db;\n      --warning:#fa7464;\n      color:var(--ink);\n      max-width:1024px;\n      margin:0 auto;\n      padding:24px 20px;\n      font:inherit;\n      font-size:16px;\n      line-height:1.6;\n    }\n    .tomo-article h1,.tomo-article h2,.tomo-article h3{font-weight:800;color:#111827;margin:1.2em 0 .5em;line-height:1.25}\n    .tomo-article h1{font-size:clamp(28px,3.2vw,40px);letter-spacing:-.01em}\n    .tomo-article h2{font-size:clamp(22px,2.4vw,28px)}\n    .tomo-article h3{font-size:clamp(18px,2vw,22px)}\n    .lede{font-size:1.125rem;color:#0f172a;margin-top:.25rem}\n\n    \/* KEY FINDINGS: two-up cards with large green number + body copy *\/\n    .key-findings{background:var(--bg);border:1px solid var(--border);border-radius:16px;padding:16px 18px;margin:20px 0}\n    .key-findings h3{margin:.25rem 0}\n    .kf-grid{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:12px;margin-top:.75rem}\n    .kf-card{background:#fff;border:1px solid var(--border);border-radius:12px;padding:16px}\n    .kf-number{color:var(--green);font-weight:800;font-size:clamp(30px,4.6vw,48px);line-height:1.05;margin:0 0 .25rem}\n    .kf-copy{font-size:1rem}\n\n    \/* PULL QUOTES: shareable card style (green bg, white text, mint quote mark) *\/\n    .pullquote{margin:1.5rem 0;border-radius:18px;background:var(--green);color:#fff;padding:36px 26px 28px;border:1px solid #0b6a67;position:relative;overflow:hidden}\n    .pullquote:before{content:\"\u201c\";position:absolute;top:8px;left:16px;font-size:56px;line-height:1;color:#a7ece2;opacity:.95;transform:translateY(-15%)}\n    .pullquote .pq-text{font-weight:800;font-size:clamp(24px,3.6vw,44px);line-height:1.2;letter-spacing:-.01em;margin:0;color:#fff}\n\n    \/* \u201cWhat homebuyers are giving up\u201d reusable stat cards *\/\n    .stat-section{--inkcard:#fff;max-width:1024px;margin:1.5rem 0;padding:20px;border:1px solid var(--border);border-radius:10px;background:#fff}\n    .stat-section h3{margin:0 0 1rem;font-weight:800;color:var(--green);font-size:clamp(1.25rem,2.4vw,1.75rem);line-height:1.2}\n    .stat-cards{display:grid;grid-template-columns:repeat(3,minmax(0,1fr));gap:12px}\n    @media (max-width:720px){.stat-cards{grid-template-columns:repeat(2,minmax(0,1fr))}}\n    .stat-card{background:var(--green);color:var(--inkcard);border-radius:12px;padding:16px 14px;display:grid;grid-template-rows:auto auto 1fr;align-items:start;justify-items:center;text-align:center;gap:10px;transition:transform .2s ease,box-shadow .2s ease}\n    .stat-card:hover{transform:translateY(-2px);box-shadow:0 4px 12px rgba(0,0,0,.12)}\n    .stat-card img{width:84px;height:auto;display:block}\n    .stat-percent{font-weight:800;font-size:1rem;line-height:1.2}\n    .stat-text{font-size:1rem;line-height:1.4}\n\n    \/* Bordered BAR CHART component (v7) *\/\n    .wc-bar-chart{--bar:var(--green);--bar-alt:var(--warning);--label:#4b5563;--val:#374151;--max:28;max-width:1024px;margin:1.5rem 0;border:1px solid var(--border);border-radius:8px;padding:20px;background:#fff}\n    .wc-bar-chart h3{margin:0 0 1rem;font-weight:800;color:var(--green);font-size:clamp(1.25rem,2.4vw,1.75rem);line-height:1.2}\n    .wc-bars{display:grid;gap:.7rem}\n    .wc-row{display:grid;grid-template-columns:minmax(100px,160px) 1fr;gap:8px;align-items:center}\n    .wc-label{color:var(--label);text-align:right;line-height:1.15;font-size:.95rem}\n    .wc-track{position:relative;height:48px;background:#fff;border-radius:6px;overflow:hidden}\n    .wc-bar{position:absolute;inset:0 auto 0 0;width:0;background:var(--bar);border-radius:6px;animation:grow .9s ease-out forwards}\n    .wc-row:nth-child(1) .wc-bar{background:var(--bar-alt);animation-delay:0s}\n    .wc-row:nth-child(2) .wc-bar{animation-delay:.05s}\n    .wc-row:nth-child(3) .wc-bar{animation-delay:.1s}\n    .wc-row:nth-child(4) .wc-bar{animation-delay:.15s}\n    .wc-row:nth-child(5) .wc-bar{animation-delay:.2s}\n    .wc-val{position:absolute;right:10px;top:50%;transform:translateY(-50%);font-weight:700;font-size:1rem;color:var(--val)}\n    @keyframes grow{from{width:0}to{width:var(--scaled)}}\n    @media (max-width:560px){.wc-row{grid-template-columns:minmax(80px,38%) 1fr}.wc-label{font-size:.9rem}.wc-val{font-size:.95rem}}\n\n    \/* RATE CARD *\/\n    .rate-card{display:grid;grid-template-columns:repeat(4,minmax(0,1fr));gap:10px;border:1px solid var(--border);border-radius:14px;padding:12px;background:#fff}\n    .rate-cell{border:1px solid var(--border);border-radius:10px;padding:10px}\n    .rate-cell .label{font-size:.8rem;color:var(--muted);text-transform:uppercase;letter-spacing:.05em}\n    .rate-cell .value{font-size:1.15rem;font-weight:800}\n\n    \/* SURVEY METHODOLOGY (body-size info; no oversized numerals) *\/\n    .method{background:var(--bg);border:1px solid var(--border);border-radius:16px;padding:16px 18px}\n    .method h2{font-size:1.05rem;color:#111827;margin-top:0}\n    .method-grid{display:grid;grid-template-columns:repeat(3,minmax(0,1fr));gap:10px;margin-top:.5rem}\n    @media (max-width:760px){.method-grid{grid-template-columns:repeat(2,minmax(0,1fr))}}\n    .method-item{background:#fff;border:1px solid var(--border);border-radius:10px;padding:10px}\n    .method-k{font-weight:600;font-size:1rem;color:#111827}\n    .method-v{font-size:1rem;color:#111827;margin-top:2px}\n\n    \/* TWO-COLUMN IMAGE MODULE in Rate History *\/\n    .two-col-images{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:16px;margin:12px 0}\n    @media (max-width:760px){.two-col-images{grid-template-columns:1fr}}\n    .img-card{border:1px solid var(--border);border-radius:12px;background:#fff;padding:12px}\n    .img-card h4{margin:.25rem 0 .5rem;font-weight:800;color:var(--green);font-size:1rem}\n    .img-card .frame{border-radius:10px;overflow:hidden;background:#fff}\n    .img-card img{display:block;width:100%;height:auto}\n  <\/style>\n\n  <!-- HEADER -->\n  <header>\n    <p class=\"lede\">Today\u2019s <a href=\"https:\/\/tomo.com\/mortgage\/interest-rates-today\" target=\"_blank\">mortgage rates<\/a> aren\u2019t extreme, but they feel that way to homebuyers, prolonging searches and increasing stress.\n    <\/p>\n  <\/header>\n\n  <!-- INTRO -->\n  <section>\n    <p>\nThe real <a href=\"https:\/\/tomo.com\/blog\/how-much-money-do-i-need-to-buy-a-house\/\">cost of homeownership<\/a> has been growing significantly in recent years.<sup>1<\/sup> In 2000, a typical homebuyer spent 20% of their income on a mortgage. Today, roughly 38% of a buyer\u2019s income goes toward housing. <\/p>\n    <p>\n      Every day, we talk to homebuyers who are struggling, making tradeoffs. Buying a home was once a joyful and empowering experience, but now it\u2019s consumed by stress. Tomo believes the joy of owning a home should never be overshadowed by the hassle of buying one, so we set out to understand the nature of homebuyer stress in 2025. <\/p>\n <p>\nIn August 2025, we surveyed more than 1,000 homebuyers\u2014people actively searching for a new home, or those who purchased a new home in the last 60 days. We asked them a series of questions about their experiences in the housing market and their feelings about home buying.<\/p>\n<p>\nWe found that homebuyers perceive <a href=\"https:\/\/tomo.com\/blog\/how-do-interest-rates-work-understanding-how-mortgage-companies-make-money\/\">mortgage rates as unusually high<\/a> and describe them as one of America\u2019s biggest economic problems. They believe this, even though today\u2019s interest rates are below the 50-year average. Because home prices have increased so much, even small fluctuations in rates have a significant influence on lifestyle and financial stability. Interest rates mark the line between <a href=\"https:\/\/tomo.com\/mortgage\/affordability\">affordability<\/a> and years of financial stress.<\/p> \n<p>\nDespite their commitment and ability to buy, active homebuyers are distraught by the <a href=\"https:\/\/tomo.com\/blog\/how-much-are-closing-costs\/\">costs<\/a> and sacrifices required to own a home in 2025. And, more often than not, this experience is made much worse due to the complexity and outright deception in the <a href=\"https:\/\/tomo.com\/blog\/can-you-switch-lenders-while-buying-a-house-absolutely-and-it-might-save-you-big\/\">mortgage-buying process<\/a>.<\/p>\n  <\/section>\n\n  <!-- KEY FINDINGS -->\n  <aside class=\"key-findings\" aria-label=\"Key findings\">\n    <h3>Key findings<\/h3>\n    <div class=\"kf-grid\">\n      <div class=\"kf-card\">\n        <div class=\"kf-number\">1 in 3<\/div>\n        <div class=\"kf-copy\">homebuyers surveyed say high mortgage rates are the biggest economic problem in America.<\/div>\n      <\/div>\n      <div class=\"kf-card\">\n        <div class=\"kf-number\">75%<\/div>\n        <div class=\"kf-copy\">think today\u2019s mortgage rates are unusually high, despite being below the 50-year average.<\/div>\n      <\/div>\n      <div class=\"kf-card\">\n        <div class=\"kf-number\">1 in 2<\/div>\n        <div class=\"kf-copy\">homebuyers say buying in today\u2019s economy feels \u201cincredibly risky.\u201d<\/div>\n      <\/div>\n      <div class=\"kf-card\">\n        <div class=\"kf-number\">82%<\/div>\n        <div class=\"kf-copy\">homebuyers believe rates will stay the same or get worse over the next 6 months.<\/div>\n      <\/div>\n      <div class=\"kf-card\">\n        <div class=\"kf-number\">59%<\/div>\n        <div class=\"kf-copy\">say homebuying costs forced them to delay or abandon milestones like marriage, children, education, or career changes.<\/div>\n      <\/div>\n      <div class=\"kf-card\">\n        <div class=\"kf-number\">60%<\/div>\n        <div class=\"kf-copy\">of home buyers expect to feel \u201chouse poor\u201d once they buy a home.<\/div>\n      <\/div>\n    <\/div>\n  <\/aside>\n\n  <!-- LIFE ON HOLD -->\n  <section>\n    <h2>High housing costs are putting life on hold<\/h2>\n    <p>\n     The emotional and financial toll of buying a home in today\u2019s economy is significant. <strong>One in three homebuyers (35%) say the housing market is \u201cmaking me rethink my entire life,\u201d<\/strong> and 42% believe buying a home is \u201cincredibly risky.\u201d Such financial anxiety is pervasive: 60% of buyers expect to feel \u201chouse poor\u201d once they close on a home.<\/p>\n<p>\nSacrifice has always been part of the homebuying journey, a fact 92% of buyers acknowledge, as they make concessions on the size and location of homes they pursue. Homebuyers also make tough trade-offs in their budgets: 88% plan to cut back on spending and saving, with 46% skipping vacations, 23% cutting into emergency savings, and 23% cutting into retirement savings.<\/p>\n<p>\nStill, the nature of the sacrifices seems to have intensified. For a majority of buyers (59%), high costs are reshaping their lives, forcing them to delay or abandon milestones like marriage, children, education, or career changes.\n    <\/p>\n\n    <!-- What homebuyers are giving up (green tiles with icons) -->\n    <section class=\"stat-section\" aria-labelledby=\"giveup-title\">\n      <h3 id=\"giveup-title\">What homebuyers are giving up to own a home<\/h3>\n      <div class=\"stat-cards\">\n        <div class=\"stat-card\">\n          <img decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/dream-job.png\" alt=\"Dream job icon\" loading=\"lazy\">\n          <div class=\"stat-text\">34% gave up on a \u201cdream job\u201d or career change<\/div>\n        <\/div>\n        <div class=\"stat-card\">\n          <img decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/family-care.png\" alt=\"Family care icon\" loading=\"lazy\">\n          <div class=\"stat-text\">30% couldn\u2019t leave the workforce to care for family<\/div>\n        <\/div>\n        <div class=\"stat-card\">\n          <img decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/student-loan.png\" alt=\"Student loan icon\" loading=\"lazy\">\n          <div class=\"stat-text\">28% further delayed paying off student loans or other debt<\/div>\n        <\/div>\n        <div class=\"stat-card\">\n          <img decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/college.png\" alt=\"Go back to school icon\" loading=\"lazy\">\n          <div class=\"stat-text\">22% weren&#8217;t able to go back to school<\/div>\n        <\/div>\n        <div class=\"stat-card\">\n          <img decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/wedding.png\" alt=\"Wedding icon\" loading=\"lazy\">\n          <div class=\"stat-text\">21% couldn\u2019t afford to get married or have a wedding<\/div>\n        <\/div>\n        <div class=\"stat-card\">\n          <img decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/baby.png\" alt=\"Have children icon\" loading=\"lazy\">\n          <div class=\"stat-text\">19% put off having children<\/div>\n        <\/div>\n      <\/div>\n    <\/section>\n  <\/section>\n\n  <!-- RATES & PESSIMISM -->\n  <section>\n    <h2>Anxious shoppers are pessimistic about rates, waiting on the sidelines<\/h2>\n    <p>\n      Mortgage rates are central to homebuyer frustrations, with nearly all buyers (85%) having postponed their search for some period of time while waiting for rates to come down. <strong>One in three buyers believe current rates are the biggest economic problem in America.<\/strong><\/p>\n<p>\nOur data confirms a frozen market, where many buyers describe themselves as &#8220;actively searching&#8221; for a home, while also saying they are waiting for mortgage interest rates to come down before they buy. Buyers feel caught between two substantial forces, their need for a new home and the extraordinary cost to get one.\n    <\/p>\n    <!-- Postponement bar chart (card) -->\n    <section class=\"wc-bar-chart\" aria-labelledby=\"wc-chart-title\">\n      <h3 id=\"wc-chart-title\">How long have you postponed buying a home due to interest rates?<\/h3>\n      <div class=\"wc-bars\" role=\"img\" aria-label=\"Bar chart showing postponement durations (scaled to 28%)\">\n        <div class=\"wc-row\">\n          <div class=\"wc-label\">Not at all<\/div>\n          <div class=\"wc-track\" style=\"--scaled:calc(15\/var(--max) * 100%)\">\n            <span class=\"wc-bar\"><\/span><span class=\"wc-val\">15%<\/span>\n          <\/div>\n        <\/div>\n        <div class=\"wc-row\">\n          <div class=\"wc-label\">Less than 3 months<\/div>\n          <div class=\"wc-track\" style=\"--scaled:calc(22\/var(--max) * 100%)\">\n            <span class=\"wc-bar\"><\/span><span class=\"wc-val\">22%<\/span>\n          <\/div>\n        <\/div>\n        <div class=\"wc-row\">\n          <div class=\"wc-label\">3 \u2013 6 months<\/div>\n          <div class=\"wc-track\" style=\"--scaled:calc(17\/var(--max) * 100%)\">\n            <span class=\"wc-bar\"><\/span><span class=\"wc-val\">17%<\/span>\n          <\/div>\n        <\/div>\n        <div class=\"wc-row\">\n          <div class=\"wc-label\">6 \u2013 12 months<\/div>\n          <div class=\"wc-track\" style=\"--scaled:calc(21\/var(--max) * 100%)\">\n            <span class=\"wc-bar\"><\/span><span class=\"wc-val\">21%<\/span>\n          <\/div>\n        <\/div>\n        <div class=\"wc-row\">\n          <div class=\"wc-label\">More than 12 months<\/div>\n          <div class=\"wc-track\" style=\"--scaled:calc(25\/var(--max) * 100%)\">\n            <span class=\"wc-bar\"><\/span><span class=\"wc-val\">25%<\/span>\n          <\/div>\n        <\/div>\n      <\/div>\n    <\/section>\n    <p>\nInaction among homebuyers is compounded by widespread pessimism about the <a href=\"https:\/\/tomo.com\/blog\/tomo-mortgage-rates-monitor\/\">future of mortgage interest rates<\/a>: 82% believe rates will stay the same or increase in the next six months. This is in contrast to forecasts from Fannie Mae, Wells Fargo, and the Mortgage Bankers Association, all projecting rate declines in the next two quarters.<sup>2<\/sup> Despite much attention paid to President Trump\u2019s displeasure with the Federal Reserve and its chairman, Jerome Powell, including calls for Powell\u2019s resignation<sup>3<\/sup> and other threats<sup>4<\/sup>, very few homebuyers (20%) expect the Trump Administration to bring down rates.<\/p>\n<!-- Rate bar chart (card) -->\n<section class=\"wc-bar-chart rates\" aria-labelledby=\"wc-chart-title-2\">\n  <style>\n    \/* Use existing wc-bar-chart base styles from your page.\n       This block only tweaks colors and the max scale for THIS chart. *\/\n    .wc-bar-chart.rates{\n      --max:45;                 \/* longest bar is 38% *\/\n      --dec:#0f807d;            \/* decrease color (brand green) *\/\n      --same:#9ca3af;           \/* neutral gray *\/\n      --inc:#fa7464;            \/* increase color *\/\n    }\n    \/* Color the bars by row *\/\n    .wc-bar-chart.rates .wc-row:nth-child(1) .wc-bar{ background:var(--dec); }\n    .wc-bar-chart.rates .wc-row:nth-child(2) .wc-bar{ background:var(--dec); }\n    .wc-bar-chart.rates .wc-row:nth-child(3) .wc-bar{ background:var(--same); }\n    .wc-bar-chart.rates .wc-row:nth-child(4) .wc-bar{ background:var(--inc); }\n    .wc-bar-chart.rates .wc-row:nth-child(5) .wc-bar{ background:var(--inc); }\n  <\/style>\n\n  <h3 id=\"wc-chart-title-2\">What do you think will happen to mortgage rates in the next 6 months?<\/h3>\n\n  <div class=\"wc-bars\" role=\"img\" aria-label=\"Bar chart of rate expectations: 3% decrease \u22651%, 14% decrease 0.5\u20131%, 24% same, 38% increase 0.5\u20131%, 20% increase \u22651%\">\n    <div class=\"wc-row\">\n      <div class=\"wc-label\">Decrease 1% or more<\/div>\n      <div class=\"wc-track\" style=\"--scaled:calc(3\/var(--max) * 100%)\">\n        <span class=\"wc-bar\"><\/span><span class=\"wc-val\">3%<\/span>\n      <\/div>\n    <\/div>\n\n    <div class=\"wc-row\">\n      <div class=\"wc-label\">Decrease 0.5% \u2013 1.0%<\/div>\n      <div class=\"wc-track\" style=\"--scaled:calc(14\/var(--max) * 100%)\">\n        <span class=\"wc-bar\"><\/span><span class=\"wc-val\">14%<\/span>\n      <\/div>\n    <\/div>\n\n    <div class=\"wc-row\">\n      <div class=\"wc-label\">Stay the same<\/div>\n      <div class=\"wc-track\" style=\"--scaled:calc(24\/var(--max) * 100%)\">\n        <span class=\"wc-bar\"><\/span><span class=\"wc-val\">24%<\/span>\n      <\/div>\n    <\/div>\n\n    <div class=\"wc-row\">\n      <div class=\"wc-label\">Increase 0.5% \u2013 1.0%<\/div>\n      <div class=\"wc-track\" style=\"--scaled:calc(38\/var(--max) * 100%)\">\n        <span class=\"wc-bar\"><\/span><span class=\"wc-val\">38%<\/span>\n      <\/div>\n    <\/div>\n\n    <div class=\"wc-row\">\n      <div class=\"wc-label\">Increase 1.0% or more<\/div>\n      <div class=\"wc-track\" style=\"--scaled:calc(20\/var(--max) * 100%)\">\n        <span class=\"wc-bar\"><\/span><span class=\"wc-val\">20%<\/span>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/section>\n  <\/section>\n\n  <!-- RATE HISTORY MISUNDERSTANDING -->\n  <section>\n    <h2>Most buyers misunderstand mortgage rate history<\/h2>\n    <p>\n      At least some market stagnation can be traced to a common misunderstanding of historic mortgage interest rates. This misunderstanding has been amplified by persistent negative messaging from politicians and media, not to mention recency bias attached to pandemic-era rates that were the lowest in history.<sup>5<\/sup><\/p> \n<p>\nWhile today\u2019s rates are much higher than during the pandemic, they are also approximately one percentage point lower than the 50-year average (7.7%, according to <a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac<\/a>). Record-low rates of the last decade were an exception, not the norm. Still, many buyers remain stuck in the belief that rates should be lower.<\/p>\n<p>\nOur data further clarifies this perception gap. Seventy-five percent of homebuyers think today\u2019s rates are abnormally high: 55% think rates are much higher today than in the 1980s, when they were nearly three times higher, and 70% think rates are higher now than they were last year, when in fact they are the same or slightly lower.<\/p>\n\n    <!-- Two-column image module -->\n    <div class=\"two-col-images\" role=\"group\" aria-label=\"Rate comparisons\">\n      <div class=\"img-card\">\n        <h4>How do today\u2019s rates compare to last year?<\/h4>\n        <div class=\"frame\">\n          <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/rates-vs-2024.png\"\n               alt=\"Chart comparing mortgage rates today vs last year\" loading=\"lazy\" width=\"394\" height=\"296\">\n        <\/div>\n      <\/div>\n      <div class=\"img-card\">\n        <h4>How do today\u2019s rates compare to the 1980s?<\/h4>\n        <div class=\"frame\">\n          <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/rates-vs-80s.png\"\n               alt=\"Chart comparing mortgage rates today vs the 1980s\" loading=\"lazy\" width=\"394\" height=\"296\">\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/section>\n\n  <!-- MORTGAGE SHOPPING CONFUSION -->\n  <section>\n    <h2>Most homebuyers are misled about how to shop for a mortgage<\/h2>\n    <p>\n      Another critical problem is that many homebuyers lack clear, honest guidance as they navigate a mortgage-buying process that is often rigged to make them pay more than necessary.<\/p>\n<p>\nAs part of our survey, we showed people standard interest rate information\u2014numbers they are likely to see on a wide range of mortgage lenders\u2019 websites. We then asked them a series of questions to better understand what they believed to be true, based on these numbers.<\/p>\n   <div class=\"rate-card\" role=\"group\" aria-label=\"Example rate details\">\n  <div class=\"rate-cell\">\n    <div class=\"label\">Rate<\/div>\n    <div class=\"value\">7.125%<\/div>\n  <\/div>\n  <div class=\"rate-cell\">\n    <div class=\"label\">APR<\/div>\n    <div class=\"value\">7.391%<\/div>\n  <\/div>\n  <div class=\"rate-cell\">\n    <div class=\"label\">Monthly Payment<\/div>\n    <div class=\"value\">$2,359<\/div>\n  <\/div>\n  <div class=\"rate-cell\">\n    <div class=\"label\">Points<\/div>\n    <div class=\"value\">1.625 ($5,688)<\/div>\n  <\/div>\n<\/div>\n\n<style>\n.rate-card {\n  display: grid;\n  grid-template-columns: repeat(2, 1fr); \/* 2 columns *\/\n  gap: 16px; \/* spacing between cells *\/\n  max-width: 600px; \/* optional, controls total width *\/\n}\n\n.rate-cell {\n  display: flex;\n  flex-direction: column;\n}\n\n.label {\n  font-weight: bold;\n  margin-bottom: 4px;\n  color: #333;\n}\n\n.value {\n  font-size: 1.1em;\n  color: #111;\n}\n<\/style>\n\n<p>The biggest problem was points. <strong>A majority of homebuyers (68%) do not understand what mortgage points are<\/strong>, believing them to reflect the total closing costs or fees associated with processing and origination (those fees aren\u2019t reflected at all in this scenario). One in three homebuyers (31%) think points are required fees.<\/p>\n<p>\nWhen asked about the advertised rates homebuyers see on lender websites, more than half (53%) said they believe those rates reflect what a typical buyer will get, when in fact those rates reflect only what an ideal buyer would be offered (i.e., ideal credit, high down payment). Additionally, 60% of homebuyers are unaware that they can negotiate with lenders to be shown more competitive rates.<\/p>\n<p>\nThe only way to accurately compare lenders, apples-to-apples, is through an official \u201cloan estimate,\u201d with transparency requirements set by the CFPB. Yet <strong>most buyers (58%) only get an official loan estimate from only one or two lenders<\/strong>. Instead, homebuyers use unofficial quotes or estimates shown online, often during the pre-approval phase, at which point there\u2019s no formal rate the lender can offer. <\/p>\n<p>\nOur data also reveals alarming trends in how little time buyers spend shopping for a mortgage. <strong>More than half (52%) of homebuyers spend less than three hours selecting a lender<\/strong>, and one in five spend less than an hour. Additionally, 59% admit they have spent more time researching a small purchase like clothes, beauty products, or hotels than choosing a lender. One in five say they have spent more time choosing something to watch on TV than picking a mortgage lender.<\/p>\n<p>\n<strong>Collectively, mortgage shopping confusion will cost <a href=\"https:\/\/tomo.com\/blog\/the-truth-about-mortgage-rates\">Americans $11 billion in 2025<\/a>.<\/strong><\/p>\n  <\/section>\n\n  <!-- WHAT BUYERS SHOULD DO -->\n  <section>\n    <h2>What homebuyers should do when shopping for a mortgage<\/h2>\n    <ul style=\"list-style:none;padding:0;margin:1rem 0;display:grid;gap:12px\">\n      <li style=\"display:grid;grid-template-columns:auto 1fr;gap:14px;align-items:flex-start;background:#fff;border:1px solid var(--border);border-radius:12px;padding:14px\">\n        <div style=\"font-weight:900;font-size:clamp(32px,5vw,56px);color:var(--green);line-height:1;min-width:48px;text-align:center\">1<\/div>\n        <div><strong>Shop for the best rate.<\/strong> Get official loan estimates from at least three lenders after you have an accepted offer on a new home. Don\u2019t feel obligated to stick with the lender that gave you a preapproval, or rely on your real estate agent to direct you to a single lender they prefer.<\/div>\n      <\/li>\n      <li style=\"display:grid;grid-template-columns:auto 1fr;gap:14px;align-items:flex-start;background:#fff;border:1px solid var(--border);border-radius:12px;padding:14px\">\n        <div style=\"font-weight:900;font-size:clamp(32px,5vw,56px);color:var(--green);line-height:1;min-width:48px;text-align:center\">2<\/div>\n        <div><strong>Benchmark what\u2019s fair for <em>your<\/em> profile.<\/strong> Use tools like <a href=\"https:\/\/tomo.com\/mortgage\/interest-rates-today\"><em>TrueRate<\/em><\/a> to see the spread between fair pricing and a rip-off.<\/div>\n      <\/li>\n      <li style=\"display:grid;grid-template-columns:auto 1fr;gap:14px;align-items:flex-start;background:#fff;border:1px solid var(--border);border-radius:12px;padding:14px\">\n        <div style=\"font-weight:900;font-size:clamp(32px,5vw,56px);color:var(--green);line-height:1;min-width:48px;text-align:center\">3<\/div>\n        <div><strong>Know what you\u2019re paying for.<\/strong> Don\u2019t take &#8220;point fees&#8221; at face value, and scrutinize common but unnecessary fees for &#8220;origination&#8221; or &#8220;processing,\u201d or something vague like a \u201ctech fee.\u201d Look at Section A of a loan estimate to understand the real fees a lender is charging, so that you can compare them apples to apples. Ask lenders for a rate with no point fees included (i.e., their \u201cpar rate\u201d), so that it\u2019s easier to compare rates across lenders.\n.<\/div>\n      <\/li>\n    <\/ul>\n<p>These steps won\u2019t solve affordability challenges overnight, but they can help significantly reduce monthly mortgage payments. Reducing unnecessary costs and empowering buyers to make better decisions is a major step toward alleviating the stress homebuyers are feeling today.<\/p>\n  <\/section>\n\n  <!-- SURVEY METHODOLOGY (body text sizing throughout) -->\n  <section id=\"methodology\" class=\"method\">\n    <h2>Survey Methodology<\/h2>\n    <p>\nThe findings in this report are based on a survey conducted online using the UserTesting market research platform. Panel participants must pass a manually reviewed practice test, blinded screeners, and automated fraud-detection solutions to ensure high accuracy of responses.    <\/p>\n    <div class=\"method-grid\" role=\"list\">\n      <div class=\"method-item\" role=\"listitem\"><div class=\"method-k\">Survey dates<\/div><div class=\"method-v\">July 31\u2013August 2, 2025<\/div><\/div>\n      <div class=\"method-item\" role=\"listitem\"><div class=\"method-k\">Audience<\/div><div class=\"method-v\">1,003 English-language speaking primary home buyers in the United States, ages 18-90.<\/div><\/div>\n      <div class=\"method-item\" role=\"listitem\"><div class=\"method-k\">Data source sample<\/div><div class=\"method-v\">All reported data is based on a core group of 739 respondents from the initial sample identified as &#8220;active homebuyers&#8221; with stated intent to purchase a home within the next 12 months.<\/div><\/div>\n      <div class=\"method-item\" role=\"listitem\"><div class=\"method-k\">Definitions<\/div><div class=\"method-v\">Homebuyers are defined as people who have looked for homes to purchase in the last 60 days and completed any of the following activities: purchased a new home, got pre-approved for a mortgage, compared mortgage companies, talked to a real estate agent, checked mortgage interest rates, or made an offer on a new home.<\/div><\/div>\n      <div class=\"method-item\" role=\"listitem\"><div class=\"method-k\">Margin of error<\/div><div class=\"method-v\">The core sample of 739 active homebuyers has a margin of error of \u00b13.6% at a 95% confidence level.<\/div><\/div>\n      <\/div>\n    <\/div>\n  <\/section>\n\n  <!-- Structured data (optional; UI-free) -->\n  <script type=\"application\/ld+json\">\n  {\n    \"@context\":\"https:\/\/schema.org\",\n    \"@type\":\"NewsArticle\",\n    \"headline\":\"Homebuyer Stress in 2025: How America feels about mortgage interest rates and what you can do to get the best rate\",\n    \"about\":[\"Mortgage rates\",\"Home buying\",\"Survey\"]\n  }\n  <\/script>\n<\/article>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);margin-left:0;margin-right:0;\" class=\"has-link-color wp-elements-c54b177fd5d2f341f8967a20726f2ac0 wp-block-post-author has-text-color has-contrast-color has-background has-tertiary-background-color has-large-font-size\"><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\"><a href=\"https:\/\/tomo.com\/blog\/author\/willbtomo-com\/\" target=\"_self\">Will Begeny<\/a><\/p><p class=\"wp-block-post-author__bio\">As VP, Will leads editorial, market research, trend analysis for Tomo. A writer who studied statistics, he spent the last few decades looking for patterns in data to answer questions about culture, consumer behavior, and business, previously as the global head of Meta&#8217;s futurist initiative. He lives in the Hudson Valley with his family, dog, cat, and 5 chickens, in a house built by a pirate in 1730.<\/p><\/div><\/div>\n\n\n<p><strong>Sources: <\/strong><\/p>\n\n\n\n<p>1. Harvard University. Joint Centers for Housing Studies. <a href=\"https:\/\/www.jchs.harvard.edu\/blog\/home-price-income-ratio-reaches-record-high-0\" title=\"\">Home Price to Income Ratio Reaches Record High<\/a>. Jan 2024. <\/p>\n\n\n\n<p>2. U.S. News <a href=\"https:\/\/money.usnews.com\/loans\/mortgages\/mortgage-rate-forecast\" title=\"\">Mortgage Rate Forecast<\/a>, Sep 2025. <\/p>\n\n\n\n<p>3. NPR. <a href=\"https:\/\/www.npr.org\/2025\/04\/17\/nx-s1-5367696\/trump-jerome-powell-federal-reserve-economy-tariffs\" title=\"\">Trump calls for Fed Chari Jerome Powell&#8217;s &#8216;termination&#8217; in blistering attack. <\/a>Apr 2025. <\/p>\n\n\n\n<p>4. CNBC. <a href=\"https:\/\/www.cnbc.com\/2025\/08\/12\/trump-fed-powell-lawsuit-washington-building.html\" title=\"\">Trump threatens Fed chair Powell with &#8216;major lawsuit,&#8217; demands interest rate cut<\/a>. Aug 2025. <\/p>\n\n\n\n<p>5. Federal Reserve Bank of Saint Louis. <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" title=\"\">30-year Fixed Rate Mortgage Average in the United States<\/a>. Sep 2025. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today\u2019s mortgage rates aren\u2019t extreme, but they feel that way to homebuyers, prolonging searches and increasing stress. The real cost of homeownership has been growing significantly in recent years.1 In 2000, a typical homebuyer spent 20% of their income on a mortgage. Today, roughly 38% of a buyer\u2019s income goes toward housing. Every day, we [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":7740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/Template-for-Blog-Content-25.png","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[285,282],"tags":[],"class_list":["post-7628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying-tips","category-research-analysis"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/wp.fifu.app\/tomo.com\/aHR0cHM6Ly90b21vLmNvbS9ibG9nL3dwLWNvbnRlbnQvdXBsb2Fkcy8yMDI1LzA5L1RlbXBsYXRlLWZvci1CbG9nLUNvbnRlbnQtMjUucG5n\/89dc68828335\/homebuyer-stress-in-america-2025.webp?w=1024&h=683&c=0&p=7628","jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/09\/Template-for-Blog-Content-25.png","_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/7628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=7628"}],"version-history":[{"count":10,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/7628\/revisions"}],"predecessor-version":[{"id":7733,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/7628\/revisions\/7733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/7740"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=7628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=7628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=7628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}