Just as the spring homebuying season was set to kick off, the market seemingly opened its doors: Inventory was up year over year, list prices had cooled from recent highs, and mortgage rates were at their lowest point since 2024. Yet, despite these favorable indicators, April saw homebuilder sentiment fall to its lowest level since September 2025, while consumer sentiment dropped to a record low.
That mismatch between what the numbers are showing and what consumers are feeling underlies the situation facing the housing market today: Fundamentally, the vibes are off.
Economist and columnist Kyla Scanlon popularized the “vibes” framework in 2022 to describe the disconnect between consumer sentiment and leading economic indicators. While that era was a different economic beast than today, her phrasing provided a vocabulary for the hard-to-pin-down reality many consumers face.
And today, homebuyers find themselves in a similar predicament. In our conversations with agents, mortgage brokers, and economists, one theme emerged: Despite the market’s green lights, both buyers and sellers are balking.
“Overall, it’s a confidence problem,” says Michael Pearson, senior vice president of business development at A&D Mortgage LLC. “Fear and uncertainty seems to be driving decision-making versus the cost of the actual mortgage.”
The reality (and reassurance) of a resilient market
“Consumer and builder sentiment is low for good reason,” says Jake Krimmel, senior economist at Realtor.com®.
Beyond geopolitical tensions in the Middle East, and the price volatility that’s followed, there’s also renewed fears of job loss and wider economic uncertainty—each alone a good reason for sentiment to drop, let alone together.
But the question, Krimmel says, is “How is the spring housing market still holding up despite that?” And the answer, according to him, is that while expectations heading into April were low, the market managed to beat them.
Inventory grew 4.6% year over year in April, with new listings surging in the inventory-constricted Northeast and Midwest, according to the April Monthly Housing Report from Realtor.com.
Pending sales also grew year over year for the fourth straight month, something Krimmel says we haven’t seen since spring 2021.
“This tells us that supply and demand are picking up relative to the past few years,” Krimmel explains. “It’s an admittedly low bar, but one that the housing market seemed unlikely to clear heading into March.”
Even mortgage rates seem headed in a positive direction. After surging to 6.46% in March, rates moderated to between 6.2% and 6.3% by late April. While this remains higher than the sub-6% rates held by 80% of current homeowners, it is notably lower than the rates seen during the previous two Aprils.
It’s what Krimmel describes as a resilient market—one that isn’t necessarily friendly, but is consistently outperforming forecasts. However, he’s careful to temper that optimism.
“Let’s also keep in mind everything here is relative,” Krimmel says. “It does not necessarily mean the spring housing market is good—it’s just not as bad as we thought it might be.”
So what’s messing up the vibes?
It’s that sentiment that may be the hardest sell for current homebuyers and sellers.
Oliver Tickner, CEO and founder of Home Value Lock and an insurance industry veteran, notes that the market is struggling with a “layering of uncertainty.”
“It is not one factor; it is the cumulative effect,” he says. “Buyers are asking a different question than they were two years ago.”
Like, instead of simply wondering if they can afford the monthly payment, Tickner observes more people are asking what happens if home prices drop shortly after they buy.
It’s what Greg Field, a real estate agent in Phoenix, describes as a “psychological showdown” between buyers afraid to buy at the top of the market and sellers resistant to lower their price too far.
Field notes that while FOMO, the fear of missing out, was once the primary driver of buyer behavior, his market is now dictated by the “fear of overpaying”—what he calls “FOOP.”
“When there is an abundance of inventory and a slowdown in sales, people expect a crash,” he says. “They are afraid to move due to a lack of clarity and direction.”
Pearson agrees, noting that consumers are being bombarded by conflicting stories about where rates and prices are headed.
“It’s a lot of information to process in a time of general stress,” he adds. “Uncertainty leads some to just not take action, siding with what they know versus what may be.”
This disconnect echoes the environment that inspired Scanlon’s vibes framework in 2022. She argued that because energy and food prices are the common denominator of daily life, high costs in those areas sour the collective mood, regardless of what other economic indicators say.
Krimmel suspects a similar pattern is playing out today, albeit through different triggers.
“Whereas consumer sentiment probably responds more directly to gas prices, housing demand and mortgage applications are more likely to follow changes in mortgage rates,” he says. “Both have been volatile lately, to be sure.”
That’s why a dose of stability would go a long way to correcting the mood in the market today, he says.
“What would shift the vibes the most would be a resolution to the conflict in the Middle East,” says Krimmel. “Mortgage rates, gas prices, and consumer confidence are all downstream of that. A lasting resolution to the conflict would do a world of good for financial markets and global trade and, by extension, mortgage rates and consumer confidence at home.”
How are buyers and sellers responding?
The vibes problem has shifted the market’s momentum, leading to a new era of caution.
Tickner notes that this isn’t just about the numbers: “What we are seeing is that many buyers are waiting for a form of protection or clarity, rather than a specific market trigger like a rate cut.”
Field and Pearson agree that this lack of clarity has inspired a renewed pragmatism among those still active in the market.
“Buyers don’t rush anymore and think critically before making a decision,” says Field. “Seeing a home in Scottsdale standing for two months does not make them panic. On the contrary, they realize that a seller needs to be pushed hard.”
In this sense, the current vibes may actually be a sign of the market regulating—a period of readjustment rather than a reflection of a true downturn, one that’s visible on the listing side as well.
“What’s important is that seller price reductions are down this year compared to 2025,” says Krimmel. “Those lower prices are a result of sellers entering the market with more realistic expectations about what it will bear.”
Krimmel says he’s waiting until June to come to conclusions about the current economic indicators, but in the meantime, the spring market may be proving that while the vibes are low, the floor is steady. Both sides are just waiting for the psychological fog to lift.
