Real Estate Rundown June 2025
June 01, 2025
Photo Courtesy of Getty Images via Unsplash
Mortgage Rates are Stabilizing
Mortgage rates have recently stabilized, though they remain at elevated levels due to concerns about budget deficits and tariffs driving up bond yields. While rates are still lower than a year ago, the spring housing market has been sluggish, with newly pending home sales falling amid economic uncertainty and stock market volatility impacting buyer confidence. Despite this, buyers benefit from improved affordability and the highest housing inventory since August 2020. As buyers navigate rate fluctuations, tools like Zillow’s BuyAbility can help them focus on listings that match their monthly budget rather than outdated list price strategies.
Pending Homes Sales Still Slow
Pending home sales in the U.S. dropped sharply in April, declining 6.3% and reversing March’s 5.5% gain, according to the National Association of Realtors. The decline was much steeper than the 1.0% drop economists had expected, and pending sales were also down 2.5% compared to a year ago. Despite an increase in housing inventory, high mortgage rates continue to suppress buyer activity across all regions, with the West seeing the largest monthly decline. NAR’s Chief Economist Lawrence Yun emphasized that lower mortgage rates are crucial to reviving the housing market, which remains sluggish amid ongoing economic uncertainty.
Inventory Up, Closings Down
Existing-home sales dipped slightly in April, falling 0.5% from March and 2% year-over-year, as high prices and cautious buyer sentiment continue to weigh on the housing market despite a notable rise in inventory. The number of listings reached the highest level in nearly five years, offering more choices and slightly slowing price growth, with the median price rising 1.8% to $414,000. Encouragingly, first-time buyers accounted for 34% of sales—their highest share since 2020—signaling some reentry into the market. However, competition remains strong, with 60% of homes selling within a month, 18% selling above list price, and a significant number of buyers waiving contingencies to secure deals. Regional trends were mixed, with the Midwest seeing slight growth, while the West experienced the sharpest decline in sales.
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