Core Insights - The uncertainty in the U.S. real estate market is at its highest level since 2023, primarily due to rising mortgage rates, which have deterred potential homebuyers [1][3] Group 1: Market Sentiment - 60% of respondents in a Bank of America survey are uncertain if now is a good time to buy a home, an increase from 57% last year and 48% in 2023 [3] - 52% of potential homebuyers believe the current market is better than a year ago, indicating some optimism despite overall uncertainty [3] Group 2: Market Activity - The spring home buying season has started slowly, contrasting sharply with the first quarter, where mortgage applications surged by 80% due to increased housing inventory and declining long-term bond yields [3] - Despite having more choices and improved affordability compared to April last year, home sales have decreased year-over-year, attributed to macro-level uncertainties affecting household confidence [3] Group 3: Future Expectations - Three-quarters of respondents expect home prices and interest rates to decline, leading them to postpone their home purchases [3] - The current mortgage rate range of 6% to 7% is perceived as the new normal, with many consumers waiting for better conditions to enter the market [4]