The volatility of the economy has everyone on edge and both buyers and sellers have been closely watching the housing market to see how it will react. The answer can be summed up in one word based on recent events.
Freddie Mac released their current data for the average 30-year fixed-rate mortgage on April 10 which fell two basis points to 6.62%. Last year around this time, it was at 6.88%. Even with that downward trend, the word on the street is that housing is probably not going to be more affordable.
“All of the back-and-forth over the last week has left the market and consumers reeling, but mortgage rates have held relatively steady so far,” said Realtor.com's senior economic research analyst Hannah Jones, via a statement to MarketWatch.
Jones said there is one word defining the current atmosphere and it might not be comforting to some people.
“Uncertainty is the latest buzzword in the housing market and economy more generally as consumers try to navigate the impact of recent tariff-policy changes,” she added.
Chen Zhao, head of economics research for Redfin, told PBS in March that "2025 is going to look a little like 2024." For buyers, that means the "supply will still be restricted," but there will be "significant variations" depending on your zip code. Unfortunately, Zhao believes it "certainly does not feel like it’s going to be much easier" to purchase a home this year.
With rising insurance and construction costs, the silver lining appears to be the slightly lower mortgage rates. Still, experts are advising home buyers to take a cautious approach in the year ahead to see how the tariff situation shakes out for the U.S.
Related: Apple iPhone Users Sweating About Possible Price Increases