Mortgage rates have climbed in recent weeks as US 10- and 30-year Treasuries rose in response to Trump’s flurry of tariffs against key trading partners, which include enormous levies against China.
But the March results were strong, bolstered by a recovery in the South after weather events weighed against its performance in the opening months of the year, and an increase in the Midwest – offsetting declines in the Northeast and West.
Lower home prices contributed to higher interest in homebuying. The median price of a home across the US dipped by 7.5%, falling to $403,600, while supply of new homes rose to 503,000.
Miki Adams of CBC Mortgage Agency highlights rising downpayment costs as a major hurdle for homebuyers, particularly first-timers, and stresses the importance of federal and private programs in overcoming affordability challenges.https://t.co/z3UIhaeTTI
— Mortgage Professional America Magazine (@MPAMagazineUS) April 21, 2025
Trade war could give hopeful buyers pause for thought in coming months
Cotality chief economist Selma Hepp highlighted the seasonal uptick but noted that home sales continue to trend below their 2024 levels even despite a significant jump in inventory.
“In addition, many markets with growing new inventories have also experienced a significant rise in existing inventories and weaking overall demand,” she said, “which is challenging homebuilders’ pricing power and poses the need for more incentives.”
A protracted trade war, meanwhile, could spike construction costs and continue putting upward pressure on mortgage rates, Hepp said – while borrowing costs could also feel the brunt of bond market chaos because of Trump’s hints about firing Federal Reserve chair Jerome Powell, even though the president appeared to dismiss that threat yesterday evening.