After a sluggish start to the spring housing season, signs of renewed buyer interest are emerging. Mortgage rates have stabilized, prompting a surge in home loan applications and increased home tour activity — indicators that market momentum may be building.
The 30-year fixed mortgage rate held steady at 6.76% this week, down from 7.09% a year ago. This stability follows confirmation from the Federal Reserve that short-term interest rates will remain unchanged, helping to ease some economic anxiety among potential buyers.
Reflecting this shift, mortgage applications rose 11% in the past week, led by a 12% spike in purchase applications — up 13% from the same period last year. Industry analysts expect a slow but steady improvement in application volume through the rest of 2025.
While economic concerns persist — including inflation and tariff impacts — a new U.S.-U.K. trade agreement has bolstered consumer sentiment, even if its direct housing impact is minimal. The agreement adds to growing signs that buyers are cautiously re-entering the market.
Home tours are trending higher than a year ago, but affordability remains a hurdle. The median monthly mortgage payment reached an all-time high of $2,868 in early May, according to a national housing report. As a result, buyers are more selective, often demanding more from sellers during negotiations.
Price growth appears to be slowing, particularly in the South, where sales and price appreciation have stagnated. However, several metro areas that experienced previous declines — including Boise, Salt Lake City, and San Francisco — are showing signs of recovery, with more markets like Austin and Raleigh projected to follow suit.