The word "recession" is creeping back into conversations—and for many people, it brings up a familiar fear: Will the housing market crash?

If you're worried about buying a home during a recession, you're not alone. But here’s the truth: understanding what actually happens to housing in a recession can help you make a smarter decision—not a fear-based one.

Flashback to 2020: Fear Was High, but So Were Prices

I remember buying a home during peak uncertainty in 2020. Everyone around me thought the market was about to crash. Headlines were full of panic: job losses, economic shutdowns, predictions of plunging home prices.

But instead of falling, prices skyrocketed. Why? Because interest rates dropped sharply as the economy slowed down. That brought a flood of buyers into the market and made mortgages far more affordable.

What History Tells Us About Recessions and Housing

Historically, recessions often lead to lower interest rates. When the economy slows down, the Federal Reserve tends to cut rates to encourage borrowing and investment. That includes mortgages, which can become significantly more affordable during these periods.

According to Freddie Mac, mortgage rates fell during nearly every recession in recent history—early 1980s, 1990, early 2000s, the Great Recession of 2008, and again in 2020.

When borrowing becomes cheaper, it often increases buyer activity and sometimes even unlocks more inventory. Many homeowners who refinanced at rock-bottom rates during a prior recession might now consider selling, especially if rates dip again. That can mean more homes available for buyers.

So... Should You Buy During a Recession?

The real question isn’t, “Is the market scary?” The question is, “Are you financially ready?”

If your income is stable, your credit is strong, and you’re buying for the long haul—not trying to flip a home or time the market—then a recession might actually work in your favor.

Uncertainty keeps some buyers on the sidelines, which means less competition for you. And if rates drop, you may be able to afford more house for the same monthly payment.

Final Thoughts

Recessions don’t stop smart buyers—they create opportunities for them.

If you’re in a position to buy and your finances are solid, waiting for perfect certainty might mean missing your window. The best moves are often made when things feel the most uncertain.