Monthly Archives: May 2025

Spring is the housing market’s busiest season. Winter is over, buyers are active, and the timing is right to make a move. Naturally, the increased activity typically leads to a bump in home prices. This year was no different. But while prices benefited from the typical seasonal pattern, they’re still slowing, according to new data from the S&P Case-Shiller Home Price Indices. The index – considered among the leading measures of U.S. home prices – found national home prices up just 3.4 percent year-over-year. Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, says the price pattern is cooling. “The National Composite Home Price Index posted a 3.4 percent annual gain in March 2025, down from February’s 4.0 percent pace,†Godec said. “Notably, only 0.9 percent of that year-over-year increase came from the past six months, indicating that most appreciation was front-loaded earlier in the year-long period.†In other words, home prices are still increasing, but those increases are becoming smaller as time goes on and the housing market finds better balance. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from one week earlier. It was the third consecutive weekly increase. Rates were up across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now as high as they were in January. “Mortgage rates reached their highest level since January, following higher Treasury yields. Additional market volatility has added to the increase, keeping the mortgage-Treasury spread wider than it was earlier this year,†Kan said. But despite higher rates, home buyers remain active, pushing purchase application demand 3 percent higher week-over-week and 18 percent year-over-year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

During the pandemic, when people were spending more time at home, certain home features saw their popularity surge. Home shoppers wanted more space, privacy, bonus rooms, and anything that could make their home more functional, comfortable, and enjoyable. Hannah Jones, senior economic researcher for the National Association of Realtors’ consumer website, says pools were one of the most highly coveted features. “This surge in demand for features like pools translated into a substantial ‘pool premium,’ where homes featuring a pool commanded significantly higher asking prices compared to their pool-less counterparts,†Jones says. How substantial? Well, at its peak, the pool premium reached 61 percent. That was in January 2022. Since then, price premiums have come down. Pools, though, have held onto some of their pandemic-era popularity. In fact, according to the most recent numbers, the typical home for sale with a pool is priced at just under $600,000, compared to $389,000 for homes without pools. (source)

Considering the size of the transaction, you might assume anyone that buys a house has done a fair amount of research before they get started. After all, it isn’t just about where you’re going to live for a few years. It’s a financial decision and understanding what you’re getting into is the key to success. But while that’s certainly true, a newly released survey shows the vast majority of current homeowners admit they didn’t understand the process and terminology until after they purchased their home. In fact, 76 percent of respondents said they lacked basic homeownership literacy when they started shopping for a house. Additionally, one in five said they even had to delaying purchasing a home due to confusion. The good news? It doesn’t have to be that difficult. With a good team of professionals and a little bit of reading, a home buyer can brush up on the basic terminology and feel confident they’re making good decisions. Don’t be among the 43 percent of survey participants who said they weren’t sure they knew the meaning of “mortgage rate.†(source)

The National Association of Realtors’ Existing Home Sales report for April found sales of previously owned homes relatively flat from the month before, with sales 0.5 percent lower than March. Lawrence Yun, NAR’s chief economist, says home sales have been stuck just below normal levels. “Home sales have been at 75 percent of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy,†Yun says. “Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand.†For now, stalled demand has helped the market recover from historically low levels of inventory. The total number of available homes for sale in April was up 9 percent. At the current sales pace, unsold inventory is now at a 4.4-month supply. A 6-month supply is considered a balanced market. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says economic uncertainty was behind the bump. “Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,†Fratantoni said. “Higher rates … led to a slowdown across the board. However, purchase applications are up 13 percent from one year ago.†The year-over-year improvement comes despite a 5 percent drop in purchase demand last week. Refinance demand also fell 5 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says economic uncertainty was behind the bump. “Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,†Fratantoni said. “Higher rates … led to a slowdown across the board. However, purchase applications are up 13 percent from one year ago.†The year-over-year improvement comes despite a 5 percent drop in purchase demand last week. Refinance demand also fell 5 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)

Americans are increasingly concerned about the economy, according to a new survey from the National Association of Realtors’ consumer website. Survey results show 63.4 percent of home shoppers feel there will be a recession at some point in the next year – the highest level since 2019. But economic uncertainty may not be bad news for buyers. “Confidence in the economy has clearly taken a hit amid ongoing headlines around trade, tariffs, and rate uncertainty,†Danielle Hale, the website’s chief economist, said. “But while concerns are definitely present, some buyers anticipate that a downturn can bring opportunity.†Among survey respondents, 30 percent felt that way, saying a recession could make them more likely to buy a home due to a belief that a downturn could lead to better affordability conditions, including lower rates and softer home prices. Potential buyers were more concerned about the limited inventory of homes for sale, which they cited as their biggest barrier to buying. (source)

The Mortgage Bankers Association’s Mortgage Credit Availability Index is a monthly measure of how easy it is for borrowers to secure financing. When credit is tight, lending standards are higher and borrowers face more challenges. When it loosens, the supply of credit, number of loan programs, and chance of approval all increase. The MBA tracks this on a scale where any decline indicates credit is tightening, while increases indicate improvement. In April, the index was unchanged after seeing significant gains in March. Joel Kan, MBA’s vice president and deputy chief economist, says credit has been improving over the past few years. “Credit availability was unchanged in April following a sizable increase in March,†Kan said. “Overall levels of credit supply remain tight but have generally grown since 2023, as lenders continue to offer cash-out refinance loan programs as well as jumbo and non-QM loans.†The index was benchmarked to 100 in March 2012 and is currently at 102.9. (source)

Competition has cooled in the housing market. In fact, according to one recent analysis, competition among home buyers is back to pre-pandemic levels after many years of bidding wars and spiking prices. That’s put buyers in a better bargaining position. So, what changed? Well, an increasing number of homes for sale. The supply of available homes is now 20 percent higher than last year, with new listings up 7.6 percent from the same time one year ago. And the improvement is widespread. In 44 of the 50 largest metro areas, listings are now higher than year-before levels. That gives buyers more options to choose from and more power to negotiate. It also forces sellers to price their homes correctly. As a result, nearly 25 percent of listings saw a price cut in April – the highest share in more than five years and another indication buyers may be in better position as the summer market approaches. (source)