Interest Rates Down as Home Sales Fall by Rebecca Radtke, LCMP  During a housing market stall, the week of Feb. 27 saw a 10-week low for home loan rates as 30-year fixed-rate mortgages averaged 6.76% according to Freddie Mac. However, new home sales fell to the lowest level in three months according to MarketWatch as they plunged 10.5% in January. According to the Realtor.com February 2025 Monthly Housing Trends Report, the share of homes for sale with price reductions was higher this month than in any other February since 2016 hitting 16.8%. This shows that mortgage rates being up was causing homes to stick on the market longer as data shows that houses are staying on the market 66 days or five days longer than in 2024. Further, the National Association of Realtors said on Feb. 27 that its Pending Home Sales Index dipped 4.6% to 70.6 last month while pending transactions fell 5.2% from a year ago. Further, Realtor.com predicts that the market may continue to slow however lower prices could draw more buyers in. The U.S. market appears to be spooked by tariffs, construction costs, and overall confidence. |
