05/14/2025
The housing market continues to show signs of stabilization—and even strength—in what we may as well call the “new normal.” Despite mortgage rates holding between 6.6% and 7.25%, buyers are active, inventory is growing, and there are real opportunities in the market.
Purchase applications jumped 11% week-over-week and 13% year-over-year which means more positive than negative weekly readings in 2025, signaling resilient demand.
Pending home sales are nearly identical year-over-year:
2025: 398,653
2024: 393,788
2023: 368,490
With slightly higher rates in April, the market held firm—buyers and sellers are adjusting.
Mortgage rate spreads are improving, so if markets stabilize or improve further, you could see mortgage rates drop faster than the 10-year Treasury suggests. If spreads normalize, today’s rates could drop by 0.64% to 0.84%—potentially putting 6% mortgages back in sight.
Inventory is up and healthy. The U.S. crossed 755,000 active listings—up 35% from last year and triple the bottom of 2022. New listings cracked the 80,000 mark for the first time in years.
The market has found its footing. Inventory is flowing at a normal seasonal pace, and price reductions are occurring as sellers adjust. This creates a balanced market where motivated buyers can find options—and negotiate—while sellers who are priced right still succeed.
Buyers: More inventory + stable rates = real opportunities, even before rates potentially drop.
Sellers: Listing now, while inventory is growing but not yet saturated, is a strategic move.
Today’s market is healthy, active, and primed for progress. There is no reason for Buyers ot Sellers to continue waiting for a perfect moment---which may never come. Start the conversation and see where it leads -- it just may lead you to your new home.
