T
he US housing market is facing a perfect storm, with the typical homebuyer's monthly payment hitting a record high of $2,807 in March 2025. This surge can be attributed to two primary drivers: escalating sale prices and mortgage rates that have more than doubled since the pandemic.

    While the median home-sale price has risen by 3% year-over-year, it's the average weekly mortgage rate that's truly eye-catching - a whopping 6.67%. Although this is slightly lower than January's eight-month high of 7.04%, it still means buyers are facing a significant increase in costs.

    The numbers don't lie: pending transactions have dropped by 4.6% from last year, a trend that's been unfolding for months. However, as spring arrives, more buyers are entering the market, with mortgage-purchase applications reaching their highest level since early February on a seasonally adjusted basis. Home tours and Google searches for "homes for sale" are also on the rise.

    But here's the twist: sellers are outpacing buyers, with new home listings increasing by 7.5% year-over-year - the largest jump so far in 2025. If this trend continues alongside falling mortgage rates, pending sales could gain momentum in the coming months.

    So, what does this mean for buyers? According to Kimberly Freutel, a Redfin Premier agent in Sammamish, WA, "Buyers are hesitant due to economic uncertainty and potential layoffs, but some are finding opportunities to negotiate. If you find a home you love and plan to stay for at least four or five years, consider making a reasonable offer, even if it's slightly below list price."