It’s spring but nobody is buying houses The housing market remained stagnant in April, defying expectations of a rebound during the traditionally busy spring season. Despite a slight increase in existing home sales—up 0.2% compared to March’s 2.9% decline—buyers continued to hesitate, leaving real estate agents and economists puzzled. The Wall Street Journal reported that economists had anticipated a 3% rise in sales following a drop in 30-year mortgage rates below 6% at the end of February. However, the anticipated surge did not materialize, highlighting persistent challenges in the market. Buyers’ reluctance is attributed to a combination of factors. The war in Iran pushed mortgage rates back above 6%, reigniting inflation concerns and dampening purchasing power. Real estate agents cited a frozen job market and steep home prices as additional deterrents. The national median existing-home price in April reached $417,700, a record high for the month, according to the National Association of Realtors (NAR). This surge in prices has made homes less accessible, particularly for first-time buyers. Inventory levels, while up, remain below pre-pandemic norms. There were 1.47 million unsold homes on the market in April, the highest number for the month since 2019. However, this figure is still significantly lower than the 2 million average seen before the pandemic. NAR chief economist Lawrence Yun noted that a 30% increase in inventory would help balance the market, providing more opportunities for buyers and sellers to negotiate fair terms. Looking ahead, the trajectory of mortgage rates will play a critical role in determining the market’s future. Jeffrey Ruben, president of WSFS Home Lending, told the Wall Street Journal that if rates fall below 6%, sales could rebound.#iran_war #national_association_of_realtors #wall_street_journal #jeffrey_ruben #lawrence_yun
Mortgage rates climb to 6.11% as Iran war roils markets US mortgage rates rose this week as investors grew concerned about the economic fallout from President Donald Trump’s military actions in Iran, reversing recent gains in housing affordability. The average rate for a standard 30-year fixed mortgage hit 6.11% in the week ending March 12, according to Freddie Mac, marking the largest weekly increase since April 2025. That surge followed Trump’s “Liberation Day” tariffs, which had previously spiked bond yields and disrupted financial markets. The increase came after mortgage rates had dipped below 6% for the first time since 2022, a level often seen as a psychological benchmark for homebuyers. However, the recent spike in rates has raised concerns about affordability, particularly as home prices remain elevated and a housing shortage continues to limit access for many Americans. The 10-year US Treasury note yield, which influences mortgage rates, climbed sharply after Trump and Israel launched attacks on Iran earlier this month. Global energy prices surged as a result, complicating the Federal Reserve’s ability to cut interest rates. On March 12, the 10-year yield reached 4.25%, its highest level since early February. For years, high mortgage rates, rising home prices, and a shortage of available housing have kept many Americans out of the market. While lower rates in recent months had encouraged some buyers to return, the current situation threatens to reverse that trend. Existing-home sales rose 1.7% in February, according to the National Association of Realtors, but a prolonged conflict with Iran could push oil prices higher, reigniting inflation fears. This could lead investors to sell bonds, further driving up Treasury yields and mortgage rates.#us #iran #trump #freddie_mac #national_association_of_realtors
US Mortgage Rates Briefly Fall Below 6% Amid Middle East Tensions Freddie Mac reported that the average 30-year fixed mortgage rate was 6% for the week ending March 5, following the escalation of hostilities between the U.S. and Iran. The yield on the 10-year Treasury, which closely influences mortgage rates, has risen since President Donald Trump and Israel launched military strikes in Iran on Saturday. Typically, government bonds act as a safe haven during market turmoil, driving yields lower as investors seek security. However, this time, yields have moved in the opposite direction, reflecting heightened uncertainty. Mortgage rates dipped to 5.98% last week—the first time they’ve fallen below 6% since 2022—crossing a psychological threshold that some economists believe could help revive the stalled U.S. housing market. While the recent increase in rates was modest, a prolonged Middle East conflict could trigger a broader bond sell-off. Combined with sustained inflationary pressures from rising oil prices, this could disrupt the recent downward trend in mortgage rates. Despite the slight rise this week, mortgage rates remain significantly lower than at the start of 2025, when they briefly exceeded 7%. Many homeowners who locked in ultra-low borrowing costs during the pandemic have hesitated to sell, fearing higher rates. This reluctance has limited the supply of homes for sale and kept prices elevated. Experts suggest that rates starting with a “5” could ease the so-called lock-in effect, encouraging more sellers to enter the market. Zillow senior economist Kara Ng noted that mortgage rates briefly fell below 6% before an oil shock reversed the trend.#iran #donald_trump #freddie_mac #national_association_of_realtors #zillow
