The Real Estate Wire | NEWS

Mortgage rates dropped slightly to 6.87%, the lowest in 2025, potentially boosting housing demand despite inflation worries. The market is seeing price adjustments and an increase in inventory, suggesting evolving dynamics.

The February jobs report showed only 151,000 jobs added, below expectations, and the unemployment rate rose to 4.1%. This signals potential mortgage rate reductions as economic growth cools.

January 2025 saw tech hubs dominating the US housing market, with seven out of ten most-viewed homes in the Bay Area. High-price listings indicate strong demand from affluent buyers despite market uncertainties.

Newly-built apartments are filling at a near-record low rate, with only 47% rented within three months. A 10% decline in construction permits indicates potential future rent increases as supply tightens.

In February, the National Association of Home Builders' Housing Market Index fell to 42, the lowest since September, due to rising construction tariffs and elevated mortgage rates, diminishing homebuilder confidence.

Pending home sales cancellations hit a record high in January, with 41,000 agreements called off, now 14.3% of transactions. Economic and political uncertainties, along with high mortgage rates, fuel buyer apprehension.