05/27/2025
Inventory Is Up — But High Rates Continue to Drag On the Market
May 23, 2025
Existing home sales slid in April — and the return of 7% mortgage rates isn’t helping the depressed spring buying season.
Key points:
Home sales dropped last month as economic uncertainty and high mortgage rates continued weighing on potential buyers.
Mortgage rates are ticking back up amid growing concerns about the rising U.S. debt and the country’s recent credit downgrade.
Inventory continues to rise, meaning that those who are ready to buy have more options to pick from.
Economic signals continue pointing to a slow spring for the housing market as elevated mortgage rates keep pent-up demand in limbo.
Though mortgage rates had plateaued in recent weeks following a surge in early April, the 30-year fixed-rate mortgage jumped again to top 7% after Moody’s announced on May 16 that it was downgrading the U.S.’s credit rating.
