New home construction is good for the housing market. When more homes are built, it keeps prices in check and offers buyers more options. Over the past few years, new home construction has ramped up and helped reduce some of the housing market’s inventory problem. It’s also helped reduce price spikes. But the rate of new home construction – and the cost of a new home – depends in part on the price of materials. So how will newly announced tariffs affect the housing market and home prices? Well, according to the National Association of Home Builders, it depends. “While the complexity of these reciprocal tariffs makes it hard to estimate the overall impact on housing, they will undoubtedly raise some construction costs,†NAHB chairman, Buddy Hughes, said in a statement. But while Hughes acknowledged potential increases, he also noted that there is currently an exception for materials imported from Canada and Mexico, like lumber, gypsum, and concrete, which will help reduce the effect. (source)

There are roughly 19 million Americans living in homes with more than two people per bedroom, according to the results of a new analysis. That means roughly 6 percent of all Americans who live in homes live in overcrowded homes. That’s a relatively small number when compared to the 38.1 percent of Americans who live in houses with extra bedrooms. Nevertheless, 19 million is a lot of Americans. So, what’s behind the number of overcrowded homes? Well, some of it may be multi-generational households – meaning those with three or more generations living in the same house. But based on the list of states with the most overcrowded homes, the primary driver seems to be affordability. The analysis found states with higher housing costs, like California, Hawaii, and New York were the states with the most overcrowded homes, while overcrowding was less common in rural areas and states like Vermont, West Virginia, New Hampshire, and Maine. (source)

There are a lot of ways to measure how affordable it is to buy a home. Time isn’t usually among them. But one new analysis decided to use it anyway. The analysis, conducted by the National Association of Realtors’ consumer website, looked at how many days of work, at an average wage, it takes to pay the typical monthly mortgage payment in each state. It found quite a spread. On the one end, mortgage payments in states like Hawaii, California, Massachusetts, and Montana all took more than two weeks of work to afford. On the other, midwestern states like Ohio, Kansas, Missouri, Indiana, Illinois, and Michigan all came in around a week. Nationally, the “magic number†was 10. Charlie Lankston, the website’s executive editor, says there are a couple of factors behind the numbers. “The number of workdays required to afford a home today stems from a couple of factors,†Lankston said. “First, home prices have risen faster than incomes, widening the gap between earnings and housing costs. Second, elevated mortgage rates have increased borrowing costs, further stretching monthly budgets.†(source)

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)

The latest U.S. Home Affordability Report from ATTOM Data Solutions has good news and bad news for buyers. The report – which measures major homeownership expenses against average wage info – found the cost of a median-priced home currently consumes 32 percent of the average national wage, which is higher than the 28 percent guideline commonly used by lenders. That means affordability is still challenging in most markets across the country. The good news? It seems to have plateaued. “Home affordability is in a holding pattern this quarter – financially stressful for average wage earners but not changing much,†Rob Barber, ATTOM’s CEO, says. “This is not unusual during the winter lull when home prices level out. A recent small decline in mortgage rates surely hasn’t hurt either for fledgling buyers.†The report found affordability levels virtually unchanged during the first quarter of 2025 from the quarter before. Affordability was also flat from where it was one year earlier. (source)

A new analysis from the National Association of Realtors’ consumer website found that the size of the typical down payment has risen $3,000 from where it was last year at the same time. The typical down payment is now $30,250 – which is about 3.5 percent higher than it was pre-pandemic. Danielle Hale, the website’s chief economist, says part of the increase is due to who is buying homes right now. “Today’s home sales are skewed toward higher-end homes, and this means larger down payments from more financially prepared, high-earning buyers as entry-level and lower-earning buyers sit out,†Hale said. “Additionally, higher mortgage rates give home buyers good reason to limit their loan size and interest costs, by putting more down upfront.†Of course, how much you ultimately put down is determined by many things, including the price of the house and the terms of your loan. As a benchmark, though, buyers last year put down about 14.5 percent of purchase price on average in 2024. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved slightly lower last week, with declines seen 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 were flat week-over-week. But while rates were stable, it wasn’t enough to drive demand, which fell 2 percent due to a drop in refinance activity. Joel Kan, MBA’s vice president and chief economist, says home buyer activity rose despite the flat week. “Purchase applications saw the strongest weekly pace in almost two months and were 7 percent higher than a year ago,†Kan said. “Last week’s purchase activity was driven primarily by a 6 percent increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)