The U.S. housing market feels like it’s holding its breath right now. Most, if not all, buyers are, of course, waiting for rates to fall. Sellers are holding onto low mortgages they locked in years ago.
And home prices? They’ve barely budged in many areas, caught in the middle. It’s the kind of moment where hesitation feels safe but also can quietly become costly.
Now, one major mortgage lender is stepping in with a clear message. This may not be a market that rewards patience for much longer. The window isn’t just sitting still. In fact, it may be starting to shift.
Vishal Garg, CEO of Better.com, formally known as Better Home & Finance Holding Company (BETR), believes a recession is on the horizon, even as parts of the economy remain resilient. Speaking at the Semafor World Economy event in Washington, D.C., Garg said the current environment could create a rare opportunity for would-be homeowners.
“I personally believe a recession is coming, and recessionary times are the best time to stop paying rent and be your own landlord,” Garg said, adding that downturns can be the best time to transition from renting to owning, Semafor reports.
His comments arrive at a time when mortgage rates are easing slightly, buyer activity is mixed, and uncertainty is tied to global events, including energy shocks, which continue to ripple through markets.
Better.com CEO warns recession could reshape housing demand
Garg’s outlook centers on the same familiar pattern. Economic slowdowns often lead to lower interest rates, which can make homeownership more affordable.
Mortgage data appear to support part of that thesis. According to the Mortgage Bankers Association (MBA), the average 30-year fixed mortgage rate recently fell to 6.42% in the week ending April 10, 2026, marking a second straight weekly decline and the lowest level in about a month. The drop has been tied in part to falling Treasury yields, which often influence borrowing costs.
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At the same time, early signs of shifting behavior are emerging. Pre-approvals for home loans are rising as some buyers anticipate future rate cuts. Refinancing applications have also jumped, while purchase activity remains subdued. That’s a clear sign that many buyers are still cautious.
Garg argues that hesitation could be a missed opportunity.
“We encourage our customers to go out there and go home shopping now while homes are available,” he said.
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Citadel CEO also said global economy headed toward recession
The recession call is not isolated. Ken Griffin, founder of Citadel, has also warned that a prolonged disruption in global energy markets could push the world into a downturn.
At the center of the concern is the Strait of Hormuz, a critical oil transit route responsible for roughly 20% of global energy flows. Continued disruptions have marked its 48th day today, keeping oil prices elevated near $100 per barrel, well above pre-conflict levels.
“Let’s assume the strait is shut down for the next six to 12 months, the world’s going to end up in a recession,” Griffin said on stage at the Semafor World Economy conference in Washington, D.C. “There’s no way to avoid that.”
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Higher energy costs can ripple through the economy, raising transportation expenses, squeezing consumers, and also tightening financial conditions.
Garg also pointed to structural changes within the labor market. He warned that artificial intelligence could drive corporate downsizing, forcing large-scale workforce retraining. He even highlighted consumer strain in unexpected places, noting that many large purchases, such as event tickets, are increasingly being financed through payment plans.
Better.com quietly leans into AI to disrupt the mortgage industry
While sounding cautious on the economy, Better.com is aggressively investing in technology to reshape how mortgages are processed.
On March 5, 2026, Better.com partnered with OpenAI to launch a tool that dramatically speeds up underwriting. The platform can reduce approval times from roughly 21 days to under a minute, to as little as 47 seconds, by automating key checks.
Related: Mortgage rate experts drop blunt message for 2026
Garg claims the company’s AI systems already operate at “feature parity” with about 80% of the 550,000 loan officers in the U.S., while reducing costs by as much as 80% compared to traditional models, Semafor reported.
Better.com is also expanding access to homeownership through partnerships with Coinbase and Fannie Mae. These initiatives aim to allow buyers to use crypto or other assets instead of cash for down payments. That’s a move that could broaden the pool of eligible buyers.
Mortgage rates and affordability pressures define what comes next
Even with falling rates, affordability remains a key challenge. Mortgage applications for home purchases recently declined, reflecting ongoing hesitation among buyers facing economic uncertainty. While refinancing activity has picked up, demand for new homes is still below last year’s levels.
Buyers are waiting for clearer signals on rates and the economy. Lenders and industry leaders, on the other hand, suggest acting sooner rather than later. But according to Garg, the window of opportunity may not stay open forever.
If rates fall further during a recession, competition for homes could intensify again. But if economic conditions worsen significantly, job security and lending standards could tighten, making it harder to qualify.
The housing market is at a determining time, shaped by easing rates, rising uncertainty, and rapid technological disruption.
But regardless of whether we view Garg’s recession warning as accurate, the decisions you make now as a buyer could define your financial future for years to come.
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