Consumer sentiment holds at 48.0 as 85% say it's a bad time to buy a house

The University of Michigan's final October reading of consumer sentiment came in at 48.0, barely below September's 48.1 and down from 53.6 a year earlier. The survey found 85% of consumers said it is a bad time to buy a house, and 62% blamed high interest rates, up from 47% last month. The share who said high prices are hurting their personal finances rose for a fourth straight month, to 56%.

Why it matters: Survey director Joanne Hsu said buying conditions for big-ticket items fell on higher interest rates and affordability worries. About 69% of consumers expect interest rates to rise in the year ahead, the highest share since April 2023.