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recent survey suggests that military veterans are more likely to purchase a home within the next year, despite ongoing uncertainties about interest rates. The survey, conducted by Veterans United Home Loans, found that both veterans and civilians reported higher levels of "homebuying readiness" in the third quarter than in any previous quarter since early 2023.

    Veterans showed greater readiness, with 74% indicating they were prepared to buy within the next 12 months compared to 69% of civilians. This is a reversal from last year's figures, when 67% of veterans and 75% of civilians said they were ready to buy.

    The improving health of the US economy contributed to this increased confidence, with over half of respondents expecting it to be better off in the next year. Recent data on jobs and inflation suggest the economy is moving in a positive direction, despite affordability and inventory challenges in the housing sector.

    Veterans were more confident than civilians that mortgage rates would fall next year, with 35% predicting rate drops compared to just 25% in the previous quarter. A separate survey by Fannie Mae reported record-high optimism around rates, with 42% of consumers expecting them to decline in the next 12 months.

    Would-be buyers are also feeling more optimistic about their personal financial situation, with 65% of veterans and 70% of civilians believing their finances will improve in the next year. However, still-rising home prices and elevated mortgage rates remain potential spoilers that could disrupt this momentum going forward.