Mortgage rates seem stuck — so what will bring back buyers?
Rates have dipped slightly, but demand is weak. Agents hope rising inventory and increased bargaining power will prompt more buyers to move forward this spring.
February 20, 2025
By the Numbers
Making sense of the data that impacts residential real estate.
- Home construction projects stall as builder outlook plungesHousing starts fell in January, and builders are less optimistic about the next six months as new federal policies could increase costs and reduce workforces.February 19, 2025
- The housing data looks ugly. How will the market respond?Demand is weak, rates remain elevated and sellers appear weary — but buyers may return to the market this spring to take advantage of “deals on the margins.”February 13, 2025
- Rising inflation dims hopes for mortgage rate reliefThe latest CPI data suggests rates will remain elevated heading into the spring shopping season, and some analysts now expect just one rate cut this year.February 12, 2025
More in By the Numbers
- Tariffs, home construction and affordabilityThe price of building materials could rise by an additional 4-6% in the next 12 months, or 10% overall, according to a new report from CoreLogic.February 10, 2025
- Rate cuts this spring? Unlikely, given new jobs dataThe latest employment report was mixed, but stronger wage growth means rate cuts will probably remain paused through the spring homebuying season.February 7, 2025
- Mortgage rates dip, but demand still weakRates appear to have stabilized in the upper-6% range, while an increase in new listings points to an early rise in inventory ahead of the spring season.February 6, 2025
- Cue the sad trombone as pending sales reverse courseA 4-month streak of gains seemed to be setting up a strong start to the new year, but sales slipped in December — “not welcome news” for hopeful agents.January 30, 2025
- No rate cuts as the Fed takes a wait-and-see approach“We’re not on any preset course,” said Fed Chair Jerome Powell, who noted it was too early to predict how Trump policies will affect the economy.January 29, 2025
- A strong finish for new home sales in DecemberSales were up at the end of 2024, and for the full year, increased by 2.5% over 2023 — in contrast to existing home sales, which fell short of 2023 numbers.January 27, 2025
- Late-year gains fail to push home sales above 2023 levelsDespite an uptick in December, existing home sales ended the year at just over 4 million, the lowest rate since 1995.January 24, 2025
- Easing rents could mean fewer buyers this springWith affordability improving for apartment dwellers — and mortgage rates and home prices still high — renters may continue to delay home purchases.January 23, 2025
- Mortgage rates dip for the first time in 6 weeksThe 30-year fixed rate averaged just under 7% this week, according to Freddie Mac, but some economists are already revising their 2025 forecasts upward.January 23, 2025
- Millions of young (and not-so-young) adults still live at homeFacing affordability challenges, the share of 25- to 34-year-olds living with parents has risen after trending down during the pandemic.January 21, 2025
- New construction ends 2024 on a high noteHousing starts were way up for the year, and prospects look good heading into 2025 — but the economy and policy decisions could present some challenges.January 17, 2025
- Average mortgage rates top 7% for the first time in 8 monthsRates increased for a fifth straight week, but the latest inflation data could be a sign that relief is coming.January 16, 2025
- Housing Market Decoded: Why Fed cuts haven’t kept mortgage rates downWhen the Fed lowers interest rates, a drop in mortgage rates often follows — but recently, the opposite has happened. Here’s why.January 15, 2025
- Investor sentiment nosedives as rates rise, rents fallAfter improving earlier in the year, sentiment plunged between the third and fourth quarters of 2024, though flippers were less pessimistic than landlords.January 14, 2025
- Mortgage rates soar following strong jobs reportThe employment data is good news for workers, but it means the Federal Reserve is unlikely to cut rates later this month, keeping borrowing costs elevated.January 10, 2025
- Housing supply and demand could shift dramatically in 10 yearsPopulation growth is slowing, which means fewer new households — and fewer new homes needed. But immigration is still a wild card.January 10, 2025
- Mortgage rates drift higher — but buyer activity picks upWeekly averages moved closer to 7%, but upcoming labor market reports could change the trajectory.January 9, 2025
- ‘Never sell’ boomers could add to inventory strainOver a third of existing homeowners — and 43% of those over 60 — say they don’t plan to ever sell their home, a Redfin survey found.January 8, 2025
- Housing optimism up 'substantially' compared to a year agoConsumer sentiment was relatively high in December, largely driven by expectations of declining mortgage rates in 2025.January 7, 2025
- Mortgage rates edge closer to 7%While rates have risen by nearly a percentage point since late September, buyers appear to have “recalibrated expectations” — and home sales have improved.January 2, 2025
