Home Price Growth Has Slowed. But high costs, Economic Worries Have Some Buyers retreating

There are signs that the Housing Market is swinging to favorite buyers. However, renewed worms about the economy are holding some buyers back.

On the UPSIDE for Homebuyers, Home Price Growth Has Slowed and Mortgage Rates have retered from recent peaks.

The Median Sale Price for Homes $ 375,475 in the four weeks ending February 16, up 3.7% from a year prior, according To redfin, a real estate brokerage firm. That is the smallest increase in nearly five months.

Meanwhile, The Average 30-Year Fixed Rate MortGage Inched Down to 6.87% The Week Ending Feb. 13, Per Freddie Mac dataThat’s the lowest so far in the year, and down from the latest peak of 7.04% in January.

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However, “Buyers are still decided with this massive affordability challenge,” said orphe divounguy, a senior economist at zillow.

MortGage Applications for the Week Ending February 14 Fell 6.6% From a Week Earlier, according To data from the Mortgage Banker’s Association. Experts Forecast January Home Sales Data – Set to come out Friday – to show a decline,

On top of relatively high costs, some buyers could be having seconds as uncertainty about the broader economy creeps in, according to chen zhao, an economist at redfin.

“A lot of it is coming from the white house,” She said of the reasons that have buyers worked.

AccordingTo redfin data, there was 564,642 new home listings in january, up 1.9% from a month prior and 4.7% higher from a year earlier. New Home Listings Hit The Highest Level Since July 2022.

Some home sellers are cutting their asking prises, too. The Typical Home is Selling for 2% Less Than Its Asking Price, The biggest discount in two years, per redfin data,

As of mid-February, Thousands of WorkersAcross multiple federal agencies and departments have been laid off as part of president trump’s aim to reduce the government workforce.

This can make people who eater work directly with the government or are connected through contrast work or federal funding “Nervous that there was big changes on the horizon,” zhao said.

“They are worked about job security,” said zhao, which takes a home purchase off the table.

“The first thing you might do is hold off on a really big purchase beCause you’re worried about Financial Security,” She Added.

The anxiety doesn’t stop there – The Possibility of Trade wars And Drastic Changes in Government Speaking May Leave Americans Wondering “What’s Next?” Zhao explained.

Trump Signed a Presidential Memorandum Laying Out His Plan to Impose “Reciprocal tarifs” on foreign nations. The plan allows the US to treat other counts’ Non-Tariff Policies as Unfair Trade Practices that Warrant Tariffs in Response.

For Consures, The Prospect of Higher Prisis on Everyday Items and the Potential for Inflation to Accelerate May Makes Them Hesitate to Invest in a New Home.

Closing costs can run about 2% and 6% of the loan amount, accordingto nerdwallet. If you take out a $ 300,000 Mortgage, you could pay from $ 6,000 to $ 18,000 in closing costs on top of the down payment.

The average buyer’s agent commission was 2.37% for homes sold in the fourth Quarter of 2024, down from 2.45% a year prior, per a data analysisBy redfin.

If not, check out the new builds market-some builders are offering incentrites like “in-house lending” and often provide favorite favorite loan terms like lower rates, experts say.