Political News Jolts Markets
Political headlines again caused volatility for mortgage markets last week but had little lasting impact. The economic data also had just a minor impact, and mortgage rates ended last week slightly lower.
Existing Home Sales Hit 15-Year Low
In March, sales of existing homes fell 6% from February, weaker than the consensus forecast, to the slowest pace for March since 2009. The median existing-home price of $403,700 was up 3% from last year at this time and at a record high for March. Inventories remain stuck at historically low levels, standing at just a 4.0-month supply nationally, far below the 6-month supply typical in a balanced market. However, inventories were 20% higher than a year ago.
New Home Sales Surge 7%
Sales of new homes displayed better performance in March, rising 7% from February, exceeding the consensus forecast. The median new-home price of $403,600 was down 8% from last year at this time. The supply of new homes stands at the highest level since 2007.
Housing Starts Slide 11%
The latest home building data fell well short of expectations. Overall housing starts in March declined 11% from February, and single-family starts sank 14% to the lowest level since July 2024. Single-family building permits, a leading indicator of future construction, dropped just a bit from February. A separate survey of home builder sentiment on housing market conditions from the NAHB unexpectedly increased. However, builders continued to report that uncertainty about tariffs and rising costs were significant areas of concern.
Mortgage Applications Tumble
Rate volatility and economic uncertainty took a toll on mortgage applications last week, according to the Mortgage Bankers Association (MBA). Applications to refinance dropped 20% from the week before last but still were 43% higher than one year ago. Purchase applications fell 7% from the prior week and were up a little from last year at this time.
Mortgage Rates for the week of 4-28-2025