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69 June 2025 J O U R N A L June 2025 » reduced some home shoppers' down payment and closing funds." Even while customers' fears about the recession increased in Q1, the major- ity of respondents to a study conducted by Realtor.com shoppers stated that it would not influence their decision to purchase a property. "Among those who reported that it would affect their home buying decision, the dominant sentiment was that a recession would be an accelerant to buyers," Hale said. "Roughly half as many said that they would be less likely to buy (15.8%) as more likely to buy a home (29.8%). Home shoppers remain optimistic amid a growing number of homes for sale, but opportunities vary by region and price point." Despite not being realized by many that pent-up housing demand is still rising, this demand will be released with the aid of any significant drop in mortgage rates. "While there have been modest improvements in affordability, collabora- tive research from NAR and Realtor.com shows that gains have not been evenly spread across the income spectrum, with middle- and upper-middle income shoppers seeing improvement while the lowest income home shoppers see less affordability," Hale said. "Looking ahead, mortgage rates—a key determinant of affordability—seem likely to remain in a range where they are more likely to dampen than bolster home sales in the near term." Note: The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes. HOW WILL CLIMATE RISK IMPACT THE RACIAL WEALTH GAP? N ot all homeowners in the United States are equally in danger from the increasing frequency and severity of weather-relat- ed natural disasters. Black and Hispanic homeowners are disproportionately in danger from significant climate hazards including wind, wildfire, and excessive heat, according to a recent Zillow report. An analysis of First Street data on Zillow for-sale listings shows that His- panic homeowners are more likely than white homeowners to possess homes in significant danger of wildfire. Extreme wind is more likely to pose a serious risk to Black homeowners. Because these regions typically have fewer financial options, the racial wealth gap may be a contributing factor. Key Highlights — U.S. • Compared to white homeowners, Hispanic homeowners are more likely to own homes that are in high danger of wildfire. • Extreme wind is more likely to affect Black households. • Communities of color are dispropor- tionately affected by growing home- ownership costs in high-risk areas. • The racial wealth gap may grow as a result of these growing expenses, which may restrict homeowners of color's ability to accumulate wealth. "The disproportionate burden of cli- mate risk on homeowners of color threat- ens to deepen financial inequality," said Kara Ng, Senior Economist at Zillow.