Monthly Archives: May 2025

In March, pending home sales saw the largest month-over-month increase in almost a year and a half, according to new numbers from the National Association of Realtors. The 6.1 percent gain was the biggest since December 2023 and included improvements in the Midwest, South, and West. Lawrence Yun, NAR’s chief economist, says lower mortgage rates were likely behind the increase. “Home buyers are acutely sensitive to even minor fluctuations in mortgage rates,†Yun said. “While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth.†In addition to lower rates and job growth, the start of the spring sales season was likely also a contributing factor driving the influx of interested buyers. According to the NAR’s numbers, pending sales are now just 0.6 percent lower than last year at the same time. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates saw little change last week from the week before. Rates were mostly flat 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. Flat rates weren’t enough to spark mortgage demand, though. Joel Kan, MBA’s vice president and deputy chief economist, says home buyers are feeling hesitant. “Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February,†Kan said. “Even with the spring home buying season underway, purchase applications decreased, as conventional and VA applications saw declines of 6 percent and 4 percent, respectively.†But despite the declines, demand for loans to buy homes remains 3 percent higher than the same week last year at this time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)