Prospective homebuyers feel better about their finances in the second half of the year, and are ready to move forward with their purchase plans, a new survey found.

About 73% of potential buyers intend to purchase within the next year, up slightly compared to the first quarter, and 62% said buying a home was within reach. More than 45% also said they would rather buy now and refinance later than wait for conditions to improve, according to Veterans United Home Loans' latest state of mind survey.

"Buyers aren't waiting for the market to feel perfect," said Chris Birk, vice president of mortgage insight at Veterans United, in a press release Tuesday. "They're feeling better about their finances, finding ways to navigate affordability challenges and moving forward on timelines that work for them."

Potential buyers who were stressed about their finances fell to 26% in the second quarter of this year, while 49% said they feel at ease, according to the survey. Future optimism also held firm, with 65% of buyers expecting to be better off financially a year from now.

Among buyers planning to purchase in the next year, 19% aim to do so within the next three months, the survey found. That percentage grew to 37% for the 7-12 month window, up from 34% last year, indicating a strong commitment to near-term buying, the release said.

Use of artificial intelligence

Prospective homebuyers have increasingly turned to AI throughout the process, as 45% said they relied on AI to assist with purchasing a home, up from 40% in the first quarter. But 77% still agreed AI should be a supporting tool, not the primary decision-maker, according to the survey.

The most common uses for AI among buyers were checking property values, at 41%, learning about housing trends, at 36%, and searching for homes by inputting specific criteria, at 32%. ChatGPT and Gemini were the most frequently utilized tools for general homebuying questions.

These results correspond with findings from a different survey Veterans United released in June. More than half, 53%, of potential buyers reported they would be comfortable buying a home without direct human involvement. Nearly 90% said they would share personal financial information with an AI-powered lender tool in exchange for mortgage advice, while about 70% said they would trust the guidance, the survey found.

"Their willingness to share financial information, seek personalized guidance and even consider a fully AI-driven experience suggests many consumers are becoming far more comfortable with this technology than they were just a few years ago," Birk said in a June press release.

Veteran vs. civilian sentiment

The survey included differences between veteran and civilian responses, which largely showed veterans were more confident about their financial position. Just 19% of veterans and service members were stressed, down eight percentage points from the first quarter, while 54% felt at ease. Additionally, 68% said buying a home was within reach and 47% said they would rather buy now and refinance later.

Meanwhile, financial stress among civilians rose eight percentage points in the second quarter, and 38% said they felt at ease. But civilian future optimism remained strong, with 62% expecting to be better off in a year.

More than 40% of veterans also plan to purchase within the next six months, compared with 22% of civilians.