Consumer Confidence Slips Amid Ongoing Government Shutdown

Amid the ongoing federal government shutdown, consumer confidence continued to decline throughout October. Citing the Conference Board's October Consumer Confidence Index, Realtor.com reports that consumer confidence slipped by one point in October, marking the lowest reading since April.

Confidence is especially low for those under 35 years old, but even older generations reported low sentiment. And by income, Americans making less than $75,000 a year reported the lowest level of consumer confidence.

What does a dip in consumer confidence mean for home sales?

With more uncertainty in the marketplace, homebuying activity softened in October. Realtor.com suggests that weakened buyer activity could lead to an increase in price negotiations and the use of incentives, particularly in the luxury sector as it is more likely to see deals during periods of uncertainty. Overall, buyers are still looking for deals during this time, but they are more likely to exercise caution.

Regardless of the government shutdown, confidence among consumers has been down for quite some time

• Consumer Housing Market Sentiment Falters: February marked the first year-over-year decline in homebuyer sentiment in nearly two years.
• Homebuyer Sentiment Down in April 2025: Homebuyers in April reported increased caution, with just 23% of would-be buyers believing it's a good time to buy a home.