T
he housing market is showing signs of improvement, but economic uncertainty may be holding back potential buyers. Key points include:

    * The 30-year fixed-rate mortgage remains relatively low, hovering around levels seen in December.

    * Home tours and searches are increasing, indicating rising demand, but pending sales have not yet followed suit.

    * Recession fears and a plunging stock market may cause would-be buyers to pause their home purchase decisions.

    Mortgage rates averaged 6.65% this week, a slight increase from last week's 6.63%, but still around the lowest levels since December. This is good news for prospective buyers, according to Freddie Mac's chief economist Sam Khater, who notes that lower mortgage rates and improving inventory are positive signs for homebuyers in the critical spring homebuying season.

    Despite this, recession fears may outweigh the benefits of lower rates. Redfin's latest market report found that pending sales were down 6.1% year-over-year, even as home tours have picked up. This is because prospective buyers are still figuring out whether lower payments are enough to justify a home purchase in today's uncertain economy.

    Easing inflation could be short-lived unless the economy weakens considerably. The Consumer Price Index report showed some easing of inflation in February, but it's not expected to prompt the Federal Reserve to lower interest rates when it meets later this month. Tariffs announced by the Trump administration are also expected to add to inflation, but their effect may not be seen in the CPI for several months.

    The turmoil in the stock market could lead some buyers to put a home purchase on hold. The Dow Jones Industrial Average fell 1.3% on Mar. 13 and is down by more than 9% since December as investors remain concerned about the effects of federal policies on inflation and a possible recession.

    Mortgage applications are picking up steam, with weekly applications up 11.2% compared to the week before, largely driven by refinance applications. Purchase applications rose a solid 8% and were up 4% compared to a year ago. Inventory also continues to rise, with Redfin reporting a 3.1% increase in new listings year-over-year. The demand is there, according to Redfin's Homebuyer Demand Index, which is up 5% compared to a year ago, while Google searches of "homes for sale" are up 10%.