Real estate investing reached a peak in 2022. That year, 13.3 percent of purchased homes were bought by investors. That’s a relatively small percentage but enough to compete with entry-level home buyers also in the market for affordably priced homes. Fortunately for today’s home buyer, that dynamic appears to be changing. Danielle Hale, chief economist for the National Association of Realtors’ consumer website, says an analysis of last year’s data shows, these days, investors are selling. “Investor trends signal a transition,†Hale says. “Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.†In other words, the number of real-estate investors selling homes reached an all-time high last year, which helps counteract the number of homes investors purchased. As the gap between the two narrows, the impact of real estate investing on home buyers lessens, providing more opportunities for first-time and entry level buyers. (source)

The past few years have been challenging for home buyers. Rising mortgage rates and higher home prices have worsened affordability conditions and made potential home buyers increasingly hesitant about purchasing a home. In fact, according to Fannie Mae’s monthly Home Purchase Sentiment Index – which gauges Americans’ perception of the housing market and overall economy – a majority of Americans still feel cautious about entering the market, with most saying they don’t think this is a good time to buy. But while many remain hesitant, a growing number say they feel the time is right. For example, Fannie Mae’s index found a 7 percent month-over-month increase in the share of Americans who say they think now’s a good time to buy a home. Similarly, the share who say they’d buy, rather than rent, if they were ready to move was also up, climbing 3 percent from the previous month. What’s behind the increase? Well, it could just be the usual spring bump in buyer demand. It could also be that slower price increases, more inventory, and less buyer competition has more Americans feeling like this spring might be the right time to buy. (source)

The luxury home market is generally defined as the top 5-percent of the most valuable homes in any given region. The range includes homes priced just under $850,000 in Buffalo to homes costing almost $6 million in San Jose. The luxury home market, like the overall housing market, has slowed recently, with overall activity dropping due to economic uncertainty, elevated costs, and higher mortgage rates. But while activity is down, home prices have continued to increase. In fact, according to one new analysis, the luxury market is seeing home price increases nearly double those of the overall market. The data shows luxury home values up 2.7 percent from last year, while the broader market increased only 1.4 percent. But while luxury homes are seeing values grow at a faster pace, regional results still mirror those of the overall housing market, with midwestern cities seeing the fastest growth and southern cities seeing the slowest. The hottest luxury home markets are now in Cincinnati, Columbus, Chicago, Cleveland, and Las Vegas. Nationally, the typical luxury home is worth about $1.8 million. (source)

Mortgage payments grew slightly more expensive due to an early spring rate bump, according to new data from the Mortgage Bankers Association. The group’s monthly Purchase Applications Payment Index tracks the median monthly mortgage payment based on home buyer loan applications. In April, the typical monthly payment increased from $2,173 to $2,186 due to rising mortgage rates during the month. Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director, Research Institute for Housing America, says there’s a silver lining in the numbers. “Economic uncertainty and high mortgage rates continue to weigh on prospective buyers’ decisions on whether to enter the housing market,†Seiler said. “Even with the increase in mortgage rates over the month, the median purchase application loan amount decreased slightly to $328,932, indicating that home prices are moderating. Slower home-price growth, and the overall trend of more inventory, are positives for housing this summer.†(source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell slightly week-over-week. Rates were down from the week before 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 saw little change week-over-week. But while rates were mostly down, they remain within the same narrow range they’ve now been in since April. Joel Kan, MBA’s vice president and deputy chief economist, says despite elevated rates, purchase demand is up from last year. “Mortgage applications decreased over the week, but continue to exhibit annual gains, with purchase applications running 18 percent ahead of last year’s pace,” Kan said. “Government purchase applications were little changed over the week driven by a slight increase in FHA purchase applications. Refinance activity fell across both the conventional and government segment and the overall average refinance loan size was the smallest since July 2024, as potential borrower hold out for larger rate drops.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Among all generations, millennials were the most likely to say they plan to buy a house in the next six months, according to the results of a new survey from the National Association of Realtors’ consumer website. The survey found 23 percent of Millennials intend to buy this year. That’s up from just 15 percent last September. Laura Eddy, the website’s vice president of research and insights, says Millennial interest has increased but mortgage rates are still a factor. “Despite current market challenges and persistently high mortgage rates, Millennials are showing a notable increase in home buying interest this spring compared to last fall,†Eddy said. “Even though we found a change in Millennial home buying intent, the influence of mortgage rates cannot be overstated, with the vast majority of Americas, including Millennials, prioritizing lower rates before committing to a purchase.†That helps explains why the survey also found that 69 percent of Americans say they aren’t planning on entering the market in the next six months. (source)

There are 1.4 million vacant residential properties in the United States. That’s about 1.3 percent of all homes. It’s also about the same number of vacant homes as there have been for the past 13 straight quarters, according to new data from ATTOM Data Solutions. ATTOM’s 2025 Vacant Property and Zombie Foreclosure Report shows the vacancy rate has been steady now for more than three years. Rob Barber, ATTOM’s CEO, says that’s good news for just about everybody. “Thankfully, we’re not seeing a lot of homes sitting vacant due to pending foreclosures, which is good for families, neighborhoods, and the market,†Barber said. “However, foreclosure filings have shown a recent uptick – with April seeing a 14 percent increase compared to the same month last year. So far, buyers seem to be scooping up these repossessed homes relatively quickly, so they aren’t sitting empty.†The states with the lowest vacancy rates included New Hampshire, Vermont, New Jersey, Idaho, and Connecticut. (source)

The National Association of Realtors’ Pending Home Sales Index tracks the number of contracts to buy homes signed each month. Contract signings are considered a forward-looking indicator of future home sales because a home’s sale isn’t typically finalized until several weeks after the contract to buy is signed. That means any increase or decrease in the NAR’s Pending Home Sales Index is likely to show up in future existing-home sales data. In April, the index found signings down 6.3 percent from March. Lawrence Yun, NAR’s chief economist, says home buyers’ position is improving despite the decline. “Home buyers have a better chance to purchase homes in affordable regions such as the Midwest, where the typical home price is $313,000 – 25 percent below the national median home price,†Yun said. “Moreover, with housing inventory levels reaching five-year highs, home buyers in nearly every region of the country are in a better position to negotiate more favorable terms.†Regionally, sales increased from last year in the Midwest, remained flat in the Northeast, and fell in the South and West. (source)

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)