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Home Prices Grow At More Sustainable Pace


The S&P Case-Shiller Home Price Index is among the most closely followed measures of U.S. home prices. It covers all nine census divisions and has been tracking values for nearly three decades. According to the most recent release, home price increases continue to slow. Data through the end of February shows annual gains of 3.9 percent, down from 4.1 percent the previous month. Nicholas Godec, head of fixed income tradeables & commodities at S&P Dow Jones Indices, says growth has slowed but is now more sustainable. “Even with … affordability challenges lingering, home prices have shown notable resilience,†Godec said. “Buyer demand has certainly cooled compared to the frenzied pace of prior years, but limited housing supply continues to underpin prices in most markets. Rather than broad declines, we are seeing a slower, more sustainable pace of price growth.†Regional differences persist, though. For example, home prices in Tampa were down 1.5 percent year-over-year, while in New York they rose nearly 8 percent. (source)

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March Pending Home Sales Up 6.1%


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)

Close-up of a green 'For Sale' sign on a textured surface.

Average Mortgage Rates Mostly Flat Last Week


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)

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New Home Sales See Spring Spike


New home sales represent a relatively small percentage of total home sales but are still an important component of housing market health. After all, when new homes are selling, builders are more likely to build more homes, which results in additional supply, stable prices, and better overall conditions for home buyers. That’s why the latest numbers from the U.S. Census Bureau and the Department of Housing and Urban Development could be a positive sign. In March, new home sales increased 7.4 percent from the month before and 6 percent from last year at the same time. Buddy Hughes, chairman of the National Association of Home Builders, says the improvement is proof buyers remain interested. “The March new home sales data shows that demand continues to be present in the market, provided affordability conditions permit a purchase,†Hughes said. “An increase in economic certainty would be a big boost to future sales conditions.†(source)

Newly constructed modern two-story house with a front porch.

Homeowners Make 50% Profit On Average Sale


Home sellers are seeing a smaller profit than they were last year but continue to do well, according to ATTOM Data Solutions’ 2025 U.S. Home Sales Report. The report found homeowners made, on average, a 50.2 percent profit selling single-family homes and condos during the first quarter of this year. The median raw profit was $119,000. Rob Barber, ATTOM’s CEO, says those are strong numbers by historical standards. “Sellers may not be enjoying quite the same windfall they were a few years ago but by historical standards profits are strong, both in terms of margins and raw dollar value,†Barber said. “The first quarter also tends to be the weakest of the year, so don’t be surprised to see profits regain ground during the summer months.†As it stands, the average profit fell 3.2 percent from the final quarter of 2024, when home sellers were making a median raw profit of about $124,000. (source)

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Existing Home Sales Slide In March


Sales of previously owned homes fell in March, according to new numbers from the National Association of Realtors. The group found sales down 5.9 percent from the month before and 2.4 percent lower than last year at the same time. Lawrence Yun, NAR’s chief economist, says the housing market remains strong despite a sluggish March. “In a stark contrast to the stock and bond markets, household wealth in residential real estate continues to reach new heights,†he continued. “With mortgage delinquencies at near-historical lows, the housing market is on solid footing.†Still, regional results show only the West posting a year-over-year increase in sales, with the Northeast unchanged and the South and Midwest both down from year-before levels. Also in the report, the median price for existing homes was $403,700 in March, up 2.7 percent from one year ago. Inventory also increased, up 8.1 percent month-over-month. (source)

Close-up of a 'SOLD' sign on a white post with trees in the background.

Housing Report Card Grades The States


The housing market’s affordability issues are mainly a supply problem. Fewer homes for sale have pushed prices higher for the ones that are available. It’s simple math and the solution is more homes. The National Association of Realtors’ consumer website recently took that equation and applied it to each of the 50 states. The resulting Housing Report Card is a state-by-state breakdown of which states are most affordable and best situated to build enough homes to meet future demand. The grades show the South and Midwest leading the pack. The South because it leads the country in home building and the Midwest due to its affordability. Not surprisingly, the Northeast and West earn lower grades, as they are home to higher prices and more significant construction challenges. Danielle Hale, the website’s chief economist, says conditions vary from state-to-state. “Our state report card rankings reveal stark disparities in housing affordability and home building efforts across the U.S.,†Hale said. “While some states are leading the way with strong home building activity, others are grappling with high housing prices and sluggish construction.†(source)

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Average Mortgage Rates Increase Week-Over-Week


According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased to their highest level in two months last week. Rates were up across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increase led to slower application activity, with refinance demand down 20 percent week-over-week and purchase demand down 7 percent. Joel Kan, MBA’s vice president and deputy chief economist, says demand has fallen but remains better than last year. “Similar to the previous week, economic uncertainty and rate volatility impacted prospective home buyers as we saw a 7 percent decline in purchase applications,†Kan said. “Both conventional and government purchase activity fell relative to the week before, but the overall level of purchase applications was still 6 percent higher than a year ago.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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Millennial Buyers Say They’d Take Better Over Bigger


The home buying process involves a lot of compromise. After all, you’re unlikely to find a house that has every one of the features and amenities on your wish list unless you have one built to your exact specifications. That means you’re going to have to be flexible and you may even have to rethink your priorities once or twice along the way. It seems millennial buyers have already figured this out. According to a new survey from the National Association of Home Builders, millennial home buyers are looking for the most square footage among surveyed generations, but more than half of them also said they’d take a smaller house over a bigger one if it had higher-quality products and amenities. In other words, they’re ready to compromise. Buddy Hughes, chairman of the National Association of Home Builders, says builders are making adjustments too. “Buyers are willing to make compromises to find the best possible home for their families,†Hughes said. “Our nation’s builders are willing to meet buyers where they are and construct a high-quality home to meet their family’s needs.†(source)

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Higher Material Costs Slow Starts In March


The U.S. Census Bureau and the Department of Housing and Urban Development’s most recent residential construction report shows the number of single-family homes that began construction in March was 14.2 percent lower than the month before. The decline, mostly due to economic uncertainty amid rising material costs, brought starts to their lowest level since last summer. But while the number of houses that began construction was down from the month before, the number of single-family homes that were completed rose 1 percent. Also, permits to build new homes increased 1.6 percent – though the improvement was more due to multi-family construction than single-family homes, which slid 2 percent. What does this mean for home buyers? Well, it depends. In areas where the inventory of homes for sale has rebounded, slower new home construction will have less effect than it will in areas in need of available homes for sale. Where inventory lags, fewer new homes could lead to increased competition and pressure on prices. (source)

A building under construction with insulation panels installed and a clear blue sky.

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