Consumer Confidence Continues to Improve

Consumer confidence improved again in July, marking the second consecutive monthly increase and reaching its highest level since February.

Lower gas prices helped lift optimism, with consumers reporting better views of current economic conditions, future business prospects, and major purchase decisions. Inflation expectations for the coming year also eased slightly, suggesting that concerns about rising prices have moderated compared to recent months.

While the improvement is encouraging, confidence remains well below where it was a year ago, showing that many Americans are still feeling the impact of high prices.

Researchers also noted that much of the survey was completed before renewed conflict between the U.S. and Iran pushed oil prices higher again. If fuel costs continue rising, the recent gains in consumer confidence could prove temporary.

Gen Z Is Becoming a Bigger Force in the Housing Market

Despite high home prices and affordability challenges, Gen Z continues to make surprising progress in the housing market.

During the second quarter of 2026, Gen Z accounted for a record 20% of all purchase mortgage rate locks, while Millennials and Gen Z together represented roughly two-thirds of all purchase mortgage activity. The data shows that younger buyers are still finding ways to become homeowners, even in one of the toughest affordability environments in decades.

Many younger buyers are relying on creative financing strategies to make homeownership possible. More buyers are using gifts, family assistance, or other nontraditional sources for down payments than at any point in the past seven years.

For lenders, this shift reflects a changing customer base and highlights the importance of understanding the needs and financial realities of the next generation of homebuyers.

First-Time Buyers Still Drive Nearly Half of Purchase Mortgages

First-time homebuyers remain a major part of today’s housing market, accounting for 49% of Newrez’s purchase mortgages in 2025. Although that’s down from 56% just three years earlier, it shows that many first-time buyers are still finding a path to homeownership despite higher prices and affordability challenges.

The median age of a first-time buyer held steady at 33, while repeat buyers generally purchased more expensive homes.

The report also found that the dream of homeownership remains strong. More than 80% of Americans still believe owning a home is part of the American Dream, even as the path to getting there has become more difficult.

While affordability continues to create obstacles, the data suggests that demand from first-time buyers remains resilient and continues to play a significant role in the purchase market.

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