In the economic update from March 28, 2025, the Realtor.com® team, led by Chief Economist Danielle Hale, provides insights to equip buyers, sellers, and professionals navigating the housing market. The report highlights crucial elements including inflation rates, consumer confidence, new home sales, mortgage rates, home prices, and down payment trends.
Inflation remains problematic, with the PCE Index staying above targets despite an uptick in its core measure. Consumer and business concerns about tariffs intensify, causing consumer confidence to dip, with expectations for the next six months falling to a 12-year low.
Mortgage rates are experiencing slight stability, easing just 2 basis points this week into the range of 6.6% to 6.7%. Although these rates are not at historic lows, the relative decrease spurred a month-on-month rise in new and pending home sales. However, new home sales show an annual increase while pending sales are down, reflecting the new home market’s persistent advantages.
The January Case Shiller data revealed an increase in home prices, particularly in major cities like New York and Boston. In contrast, Realtor.com’s more recent weekly housing updates show a softening in asking prices. Even as listing prices remain stable, inventory is on the rise, reflecting a slower market compared to last year, though the pace is gradually quickening.
The rising home prices, paired with high mortgage rates, have driven median down payments to record highs. Homeowners are seeing significant equity in their properties, which influences differing trends in sales based on price points. Notably, for modest down payment buyers in the 30th percentile, growth in down payment amounts has lagged behind the median.
For comprehensive details, visit realtor.com/research, where full reports and housing data are available. Stay updated on Twitter and Instagram for timely updates and insights. Sign up for the mailing list to receive monthly updates and the latest research.
In the latest Realtor.com® update, key economic indicators revealed persistent inflation and declining consumer confidence impacting the housing market. Mortgage rates have slightly declined, aiding new home sales while pending sales struggle. Home prices show mixed signals, with down payments hitting record highs. Resources for further information are provided for ongoing updates.
The March 2025 economic update underscores persistent inflation challenges and declining consumer confidence impacting the housing market. While mortgage rates have slightly eased, the dynamics between new and pending home sales reveal varying trends favouring new constructions. Rising down payments reflect homeowners’ equity growth, highlighting the complexities within the current market. Staying informed through resources like Realtor.com remains essential for stakeholders in this evolving landscape.
Original Source: www.realtor.com
