Americans are more pessimistic about the housing market than at any time in the last decade

According to a survey, Americans haven't felt bad about the housing market in years.

The Fannie Mae Home Purchase Sentiment index fell in July to its lowest level in a decade. The print shows a level well below what it was in 2019.

The decline was charged by higher borrowing costs as the Federal Reserve ramps up interest rates to ward off hot-inflation pervading through the US economy

Only 17% of consumers think it's a good time to buy a home in the current economic environment, despite the fact that a majority of people still don't feel confident in the housing market.

Doug Duncan, Fannie Mae senior vice president and chief economist, said in the report that the HPSI has declined for much of the year.

"Unfavorable mortgage rates have been cited by consumers as a top reason behind the growing perception that it's a bad time to buy a home."

According to the report, Americans are not optimistic about home price growth. The full index is down over the course of the year.

Duncan said that consumer reaction to current housing conditions is likely to be increasingly mixed.

The latest data shows that the housing market is in worse shape than it was in June. It entered its worst period of decline as mortgage applications cratered at a 52% annualized rate.

The outlook for the US economy looks bleak as investors worry about the risk of a recession in the next year.