As spring approaches, a decline in mortgage rates to 6.76%—the lowest in 2025—may motivate homebuyers to act, though significant sales increases are not expected until late spring. Data indicates a slowdown in the housing market, with personal income and savings rising against a backdrop of rising caution among consumers, evidenced by declining consumer confidence. Housing prices rose by 4-5% through 2024, but the number of price reductions has also surged, highlighting a complex market dynamic where inventory is growing but new listings are slowing.
Mortgage rates eased for a sixth week in a row to 6.76%, the lowest level of 2025, yet remain over half a percentage point above September lows.
The Case-Shiller index showed sales prices increased between 4% and 5% to end 2024, despite flat or lowering list prices in some areas.
We've seen the highest share of February price reductions since 2017, indicating growing caution among buyers in the market.
Combined data suggests consumers are becoming more cautious, as consumer confidence fell for three months consecutively, likely affecting sales activities.
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