D
espite ongoing economic uncertainty, the real estate market is showing signs of becoming more favorable for buyers. Mortgage rates have dropped slightly this week and inflation data was softer than expected in May. Housing inventory growth in many markets is providing buyers with negotiating power.

    The summer housing market could see a boost if price cuts occur amid growing inventory. According to Realtor.com's Hannah Jones, "affordability remains a challenge for the typical buyer, but with more price cuts, easing market pace, and ample home supply, prospective buyers have a better chance of finding what they're looking for."

    Mortgage rates are slowly leveling off, with the 30-year fixed-rate mortgage averaging 6.84% this week, down from last week's 6.85%. However, an uptick in market activity this summer is far from assured, as the Federal Reserve has left interest rates unchanged and is not expected to cut rates at next week's meeting.

    Mortgage applications have increased, with a 12.5% jump for the week ending June 6, according to the Mortgage Bankers Association. Purchase applications were up 10%, year-over-year purchase applications are up 20%.

    The gap between median listing and sale prices continues to widen, indicating that sellers are willing to negotiate. In Redfin's weekly report, the median home sale price was $397,000, or 7% below the median list price of $425,950.

    Economic uncertainty remains a wildcard for the summer real estate market. While the softer than expected Consumer Price Index report provided some good news, it's unclear whether tariffs are impacting prices yet.