Monthly Archives: April 2025

Spring is here and the inventory of homes for sale is climbing. In fact, the total number of homes actively for sale in March was 28.5 percent higher than year-before levels and the number of newly listed homes jumped 10.2 percent – the strongest showing in three years. The data, from the National Association of Realtors’ consumer website, shows inventory gains in each of the 50 largest metro areas and, in 18 of those cities, it now exceeds its pre-pandemic level. Danielle Hale, the site’s chief economist, says the market is rebalancing. “We’re seeing a market that’s rebalancing, offering more choices for shoppers,” Hale said. “Data also suggests that pricing competitively is key for sellers in today’s environment. This is likely to be even more true after the mid-April ‘best time to sell,’ when the number of sellers grows even more swiftly.” In other words, more inventory is likely on the way and home sellers should price accordingly. As it is, price cuts this year were the highest they’ve been in any March since 2016. (source)

According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates fell last week from one week earlier. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But while rates were down, the decline wasn’t enough to push mortgage demand higher. Joel Kan, MBA’s vice president and deputy chief economist, says demand was down due to falling refinance activity. “Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook,” Kan said. “Refinance applications were down almost 6 percent last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

On the list of expenses prospective home buyers worry about, homeowners insurance ranks low. Buyers are more likely fretting about their down payment, closing costs, and potential monthly payment than they are insurance rates. But while they may not be thinking about insurance, they’re going to need it. First off, it’s typically required if you have a mortgage. Secondly, owning an uninsured home means you’re one weather-based disaster from financial ruin. Put simply, it’s not worth the risk. But some homeowners take it. In fact, a recent study found 13.6 percent of U.S. homes are uninsured – and it may be due to rising costs. Homeowners insurance prices increased 33 percent between 2020 and 2023 and now average $2,530 per year nationally. Of course, where you are determines the price and could push it much higher. That’s why it’s vital that home buyers know what they’re likely going to be paying for insurance well in advance of buying a home. (source)

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook detailing what it sees ahead for the housing market and overall economy. According to this month’s commentary, prospective home buyers may have reason for encouragement. That’s because the group says it’s revised its view on mortgage rates, and it now expects they will fall lower by the end of year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says it should help give buyers a boost. “We expect the recent pullback in mortgage rates will provide a small boost to home sales this year,” Palim said. “While our latest forecast calls for a period of modestly slower economic growth, historically, interest rates have been the most important driver of home sales. We think mortgage rates will move even lower within the next quarter and ultimately close the year … low enough to generate some extra sales from any would-be buyers still waiting on the sidelines.” (source)