T
he spring homebuying season may be showing signs of a turnaround, with mortgage applications increasing 11% since the end of April and stabilizing rates. The 30-year fixed-rate mortgage remained unchanged at 6.76%, down from 7.09% a year ago. This stability is attributed to the Federal Reserve's decision not to change short-term interest rates, which has led to a balancing act in the broader economy.

    Mortgage applications jumped this week, with purchase applications up 12% compared to the previous week and 13% higher than a year ago. Mike Fratantoni, chief economist at the Mortgage Bankers Association, expects mortgage application volume to continue outpacing last year's numbers.

    The recent U.S.-U.K. trade agreement may have a positive psychological impact on consumer confidence, which has been impacted by uncertainty over tariffs and rising prices. Home touring is up compared to a year ago, but affordability remains a concern, with the median U.S. monthly housing payment hitting a new all-time high of $2,868.

    Home price growth appears to be slowing in some parts of the country, with home sale prices increasing in 83% of metro areas during the first quarter of 2025, down from 89% in the fourth quarter of 2024. However, some markets that experienced price declines in the past are now rebounding, and others may see prices recover in the near future due to solid job growth.

    A small decline in market volatility is providing signals that the spring homebuying season could be partially salvaged. The new trade agreement and calming mortgage rates reflect a balancing act in the broader economy, with investors on edge due to concerns around inflation and potential impacts of new tariffs.