US Home Prices Tick Down in April Amid Persistently High Mortgage Rates

Epoch Times

20-05-2025

Home prices fell by 0.1 percent month over month in April across the United States as buyers hesitated to purchase properties, real estate brokerage Redfin said in a May 20
The 0.1 percent decline was the first monthly fall in home prices since September 2022. Redfin senior economist Sheharyar Bokhari attributed the relatively flat month-over-month home prices to lower demand and more properties on the market.
'Buyers are adopting a wait-and-see approach, with the impact of U.S. tariff policies and a potential recession weighing heavily on their decision to make major purchases,' said the brokerage.
'The total number of homes for sale is at a five-year high, mainly because homes aren't selling. That's leading sellers to offer concessions at near-record levels.'
Among the 50 most populous metro areas, prices fell on a monthly basis in 25 of them. The largest
'Home prices are flat, and that's good news for buyers after years of rapid increases,' Bokhari said. 'But even with prices softening, affordability remains a major hurdle. Elevated mortgage rates and high prices mean that many buyers are stretching their budgets to make a purchase.'
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The average weekly
This year so far, the rate has consistently remained above 6.6 percent for every single week.
Mortgage rates could spike further following credit rating agency Moody's
In making the downgrade, Moody's said the fiscal health of the government was deteriorating, citing the burdensome cost of serving its debts and the high cost of rolling over the current debt in an environment where rates are already elevated.
The downgrade can make investors less confident about the U.S. government's debt, pushing up yields on government treasuries, which would put upward pressure on the mortgage rates. On Monday, mortgage rates briefly crossed the 7 percent level before coming down, according to a May 19
Treasury Secretary Scott Bessent
Affordable American Homes
In a May 14
'With uncertainty around jobs, investment portfolios, and budgets easing, home sales could be poised for a rebound in the months ahead,' Zillow said.
'Buyers currently have access to the largest housing inventory since August 2020, and mortgage payments are down by 1.3 percent compared to a year ago. Additionally, buyers have the strongest negotiation power they've had in the past six Aprils—all positive tailwinds for future housing activity.'
In March, a group of lawmakers reintroduced the American Housing and Economic Mobility Act, which aims to tackle the country's housing crisis, the U.S. Senate Committee on Banking, Housing, and Urban Affairs said in a March 11
The bill seeks to use federal funding to build almost 3 million new housing units, potentially lowering rental costs for middle- and lower-income families by 10 percent.
It aims to provide assistance to first-time buyers when it comes to down payments, create incentives that would make local governments get rid of unnecessary land use restrictions driving up costs, and restrict the role of private equity in the housing market.
More than 50 organizations have endorsed the bill, including the National Low Income Housing Coalition, the American Federation of Labor and Congress of Industrial Organizations, and the National Community Reinvestment Coalition, the statement said.
'Housing means dignity, safety, and security, and as a Senator who grew up in public housing, I know that strengthening housing availability and affordability is critical to helping folks establish a solid foundation to build a healthy future,' said Sen. Raphael Warnock (D-Ga.)
'That is why I am proud to fight for this transformational legislation that will unleash construction of millions of new homes and create hundreds of thousands of new jobs in the process.'