Latest news with #JoelBerner
Yahoo
16-05-2025
- Business
- Yahoo
These High Tax States Could Benefit the Most From Higher SALT Deduction
There's a new bill in Washington that's become the subject of some ugly debate. In a surprising twist, the fate of the current House Republican tax package might hinge on a proposal to raise the State and Local Tax (SALT) deduction cap. Under current law, homeowners can deduct up to $10,000 in combined state income and property taxes on their federal return—a limit set by the 2017 Tax Cuts and Jobs Act. But that cap is set to expire, and a bloc of House Republicans from high-tax states like New York, New Jersey, and California are threatening to derail the package unless the SALT cap is raised or scrapped entirely. The current proposal would raise the deduction limit from $10,000 to $30,000, but some lawmakers argue that still falls short of providing meaningful relief for their constituents. If the measure passes, however, here are the areas that can benefit the most. Property taxes have been something of an albatross around the neck of homeowners. After the equity boom following the COVID-19 pandemic pushed home prices (and tax assessments) to new heights, homeowners have been left footing the bill for higher taxes. Many state and local governments have responded by passing exemptions that lower the taxable value of homes, particularly for seniors and longtime residents who have owned their homes for decades or more. But there hasn't been the kind of national relief that could provide a meaningful resolution for U.S. homeowners now sitting on (and paying taxes on) $35 trillion of residential real estate wealth. Enter the SALT cap. The federal limit on state and local tax deductions has been a sore spot for homeowners in high-tax states where their annual property tax bill exceeds the $10,000 threshold. Removing or raising that cap could offer much-needed breathing room. But the implications go beyond individual tax bills. Easing the SALT deduction limit could also help unstick a sluggish housing market by unlocking more buying power. 'This deduction could also help some owners move up,' explains senior economist Joel Berner. By boosting buying power, the expanded deduction could motivate some homeowners to part with their historically low mortgage rates and move into the new home they want or need—freeing up inventory for other hopeful buyers. How much could it help? Berner offers a scenario: 'Suppose someone owns a $1,000,000 home and decided to put all the tax savings into the monthly mortgage payment for their next home—that $7,000 per year would increase their home price budget to about $1.1 million, or 10%.' In a tight market where affordability is stretched and inventory is limited, that kind of financial flexibility could be the nudge both sellers and buyers need. 'Increasing the SALT cap from $10,000 to $30,000 or more would have the most impact on homeowners in high-tax states and in high-dollar homes,' says Berner. 'An additional $20,000 in deductions could be worth about $7,000 in annual tax savings for these individuals (assuming a 35% federal tax rate).' But that relief won't be equally felt across the country. That's because some states and counties have much lower property values and tax rates, so homeowners don't pay over the current $10,000 cap. Take Daniel Cabrera, founder and CEO of Fire Damage House Buyer, for example. As a resident of San Antonio, TX, he pays about $7,000 a year in property taxes—well within the current limit of SALT deductions. But his New Jersey–based parents pay roughly $17,000 a year in property taxes. 'With the present $10,000 SALT limit and 35% federal income tax rate, they lose the ability to claim about $7,000,' he explains. That $7,000 hits especially hard as his parents near retirement. 'There's been just constant conversations about them coming down here to Texas,' he says. That's because Texas not only has a lower overall property tax burden than New Jersey, but also offers a range of local exemptions for seniors that can significantly reduce their tax bills. Who will benefit from SALT deductions largely depends on where they live and what their current tax burden is. An analysis from pinpoints the top five states and 10 metro areas with the highest share of properties that exceed the current SALT cap. State Share of properties with tax bills over $10K NJ 39.9% NY 25.9% CT 19.4% CA 19.3% MA 18.4% Metropolitan Statistical Area Share of properties with tax bills over $10K San Jose-Sunnyvale-Santa Clara, CA 47.9% New York-Newark-Jersey City, NY-NJ 47.8% San Francisco-Oakland-Fremont, CA 40.9% Bridgeport-Stamford-Danbury, CT 39.3% Kiryas Joel-Poughkeepsie-Newburgh, NY 37.5% Trenton-Princeton, NJ 35.8% Nantucket, MA 35.5% Austin-Round Rock-San Marcos, TX 32% Jackson, WY-ID 28.7% Santa Cruz-Watsonville, CA 28.1% The debate over the current tax package—including changes to the SALT deduction—is still unfolding. With only $50 billion in negotiating room left, it's unclear whether that will be enough to appease lawmakers from high-tax states. If not, their opposition could be significant enough to derail the entire bill. But homeowners don't have to wait for federal tax relief. A analysis found that nearly 40% of Americans might be overpaying on property taxes—and could save money by appealing their tax assessments. A new tool makes the process easier: Homeowners can compare their property's assessed value to similar nearby homes and use that data as evidence in their appeal. It's a simple, data-driven way to push back against rising tax bills, no legislation required. EXCLUSIVE: 'Sold on SLC' Star Dishes What It's Really Like Working With Celebrity Clients—Including Lisa Barlow of 'Real Housewives' 'Real Housewives of Salt Lake City' Star Angie Katsanevas Lists Her Scene-Stealing Utah Mansion for $4.5 Million 'Real Housewives of Salt Lake City' Star Whitney Rose Lists Her Suburban Home for $2.1M
Newsweek
05-05-2025
- Business
- Newsweek
America's Property Tax Headache
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Rising property taxes over the past five years have exacerbated American homeowners' housing affordability struggles, with many reporting that they are now paying much more than they initially budgeted for them. According to a new survey by property tax appeal service Ownwell, 66 percent of homeowners in the U.S. say their bill is higher than they budgeted for, while three in four (74 percent) are worried about paying even more in the near future. Why It Matters Between 2019 and 2024, property tax bills have gone up in nearly every U.S. metropolitan area, according to a recent report from real estate brokerage Redfin, with Florida counting three of the five metros with the biggest hikes. Nationwide, property taxes increased by nearly 30 percent during the same five-year period, reaching a monthly median of $250. Rising home values during the pandemic buying frenzy have driven these increases, together with the increased frequency and severity of natural disasters—especially in vulnerable states like Florida—and changes to local tax rates. A new survey found that 66% of US homeowners say property taxes are higher than they budgeted for and are worried will continue rising. A new survey found that 66% of US homeowners say property taxes are higher than they budgeted for and are worried will continue rising. Photo Illustration by Newsweek But higher property taxes are now among the growing costs burdening aspiring homebuyers and pushing them on the sidelines of the market, cooling down demand at a time when inventory is finally growing. What To Know "Property taxes have been rising in recent years, including a 2.7 percent increase from 2023 to 2024," Joel Berner, senior economist at told Newsweek. "This is primarily due to increases in home value assessments, which have been following the run-up in listing prices and home values since the pandemic. With the tax rate held steady, growth in assessed values will lead to growth in tax burden," he added. "However, the median assessed value only increased by 2.0 percent from 2023 to 2024, so some of the increase comes from actual tax rate increases." The Ownwell survey found that 82 percent of American homeowners budgeted for property taxes, but two-thirds felt this year's bills were higher than they expected. While a majority of homeowners all across the country are concerned about property taxes rising further, this concern was particularly stark in states which currently pay the highest bill in the nation, including Colorado (85 percent), New Jersey (81 percent), California (80 percent) and New York (78 percent). "Property taxes are high in states like New Jersey, Connecticut and Texas, where homebuyers need to take taxes into account when they're figuring out how much they can pay for a house," NerdWallet's home and mortgage expert Holden Lewis told Newsweek. "But in states with low property taxes, like Hawaii, Colorado and Alabama, taxes aren't a major factor in the housing budget." With a median property tax burden of $3,500, taxes do weigh heavy on homeowners, Berner said. "Especially at a time when home insurance premiums and homeowner association (HOA) fees are growing, there isn't much extra space in a homeowner's budget for tax increases," Berner said. "Tax bills jeopardize home affordability, which is why it's so important to ensure you're being taxed fairly." Nearly half of all homeowners surveyed by Ownwell (48 percent) believed that their assessed home value might be inaccurate, but only 22 percent had ever tried to appeal their property taxes. Another recent report by found that many of these homeowners may in fact be paying more in property taxes than they should. According to the company, 40.5 percent of properties in the U.S. could be over-assessed, which means that their owners are potentially paying higher property tax bills than they should. How Homeowners Could Seek Immediate Relief While many might not know this is a possibility, homeowners have the option of challenging their property tax assessments. "In states with high property taxes, something remarkable happens around the time that the counties issue their tax bills: homeowners' mailboxes fill up with letters from companies that specialize in challenging tax assessments," Lewis said. "These companies sometimes succeed in reducing tax bills." Homeowners can also make sure that they claim all the tax exemptions that they qualify for. "In many places, a homestead exemption provides a tax break on the primary residence. Other exemptions may be available for seniors, disabled people and even for houses with solar panels," Lewis explained. A Property Tax Revolution in the Works In GOP-led states across the country, including Florida and Texas, state legislators are trying to drastically reduce property taxes, or trying to eliminate them altogether. Four states, including Florida, Illinois, Kansas, and Pennsylvania, currently have plans to abolish the property tax. No state in the union has so far eliminated the tax, though some have tried. Eliminating property taxes, however, would force local and state governments to get funding for important public services—including public schools, streets and roads, and police and fire fighting services—through other means, especially in states that do not have an income tax. Caroline Bruckner, a tax professor on the faculty of American University Kogod School of Business, previously told Newsweek that abolishing property taxes "would be a double-whammy for states that are also losing funding from federal programs." In other words, she said, "with proposed cuts to key federal agencies that provide funding and services, there will be more pressure on states to step up and deliver critical services for education, healthcare and disaster aid."
Newsweek
24-04-2025
- Business
- Newsweek
Austin's Housing Market Is in Trouble
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. After having pulled through a dramatic home price correction over the past couple of years, the former pandemic boomtown of Austin, Texas, is now navigating even more troubled waters, as buyers scared off by brewing economic uncertainty are failing to show up for the city's growing housing supply. "Our market here was showing signs of price stabilization after unprecedented declines, as buyers re-entered the market after the 3 percent interest rate 'hangover' finally wore off at the beginning of the year," Scott Turner, founder of Austin-based Riverside Homes, told Newsweek. "But the economic uncertainty caused by tariffs and the risk of recession definitely affected their mentality, making them more cautious and leaving housing inventory levels at nearly an all-time high." The downtown skyline on April 11, 2023, in Austin, Texas. The downtown skyline on April 11, 2023, in Austin, It Matters Between February 2020 and May 2022, the median sale price of a home in Austin jumped by more than 60 percent, according to Redfin data, reaching a peak of $659,500. The increase was mainly a result of the massive influx of out-of-state newcomers sparked by the rise of remote work, which allowed many Americans to relocate to more affordable, more livable cities and turn their back on expensive metropolises. But the Austin housing market, which had become one of the most overheated in the country, experienced a significant slowdown after the pandemic, with return-to-office orders affecting the number of people relocating to the Texas capital. With a few notable exceptions, home prices have been consistently falling in the city, year-over-year, since late 2022. The City's Boom And Bust "The story of the Austin housing market is basically the same as the national story, just a bit more dramatic," Austin-based Joel Berner, senior economist at told Newsweek. "Following the peak of the pandemic, there was a major run-up in home prices amid record-low mortgage rates as buyers rushed to snatch up homes." Eldon Rude, a longtime housing market analyst based in Austin, told Newsweek: "Texas was one of several Sun Belt states that experienced significant in-migration between 2020 and 2022, which resulted in an imbalance in demand over supply for homes. "Such strong demand, coupled with extremely low mortgage interest rates, resulted in significant increases in home prices in all of the major metropolitan areas in the state." The median listing price in the city jumped from $369,745 in April 2020 to $625,000 in April 2022, an uptick of 69 percent in just two years. At the same time, inventory plummeted, though it quickly recovered to pre-pandemic levels by 2023. "Since then, inventory has continued to grow year-over-year, and March 2025 had more active for-sale listings in Austin than any March in our data history," which dates to March 2017, Berner said. But buyers are not exactly jumping on the chance of buying a home, even with more options available on the market. "Just because home prices are coming down and there are more listings, doesn't mean that prices are affordable. So there's still a supply problem in cities like Austin," Turner said. "I think only 25 percent of Austinites can afford to purchase a home at the median home price." Rude said: "With interest rates now higher than they were prior to COVID, coupled with a slower economy and less in-migration into the state, there are now fewer buyers in the market, and what buyers there are face affordability challenges given elevated home prices as well as higher mortgage payments." Berner said: "The supply growth has softened prices, and the median listing price in March 2025 was $510,000, down 7.2 percent from March 2024. It has been a slow year, with 12 consecutive months of prices falling year-over-year. The correction has come for Austin sooner and more significantly than the national housing market." According to Turner, home prices are now stabilizing after "an unprecedented drop." Despite a gloomy outlook for the city's housing market's short-term future, Turner said Austin's economy remains robust. "Our real estate market is returning to a 'new normal' in terms of supply and demand," he said. That is—as long as the Trump administration's tariffs do not massively disrupt the city's market even further. "Austin's economy outside of real estate is fairly diversified and still strong, but neither Austin nor Texas are immune to the impacts of a recession or tariffs, in the case of home building," he said. "It will take time for our market to work through this inventory, but despite Austin's growth, much of this inventory remains unattainable for most Austinites, particularly with rates where they are, making matters worse." The Ripple Effect Of Trump's Tariffs Turner said that existing homes currently for sale on the Austin market are not going to be impacted much by the tariffs, but these are still influencing buyer behavior, making them "more cautious." For new home construction, on the other hand, "the impact of tariffs cannot be overstated," Turner said. "Significant cost increases, particularly in Texas, where we are more reliant on imported building supplies, combined with falling prices would be devastating, not just to Austin's market, but nationwide. If it gets worse, homebuilding could be the first major industry hit by 'stagflation,'" It is not only tariffs that are causing concerns among homebuilders in the U.S. and Austin—but uncertainty over whether the president would stick to these tariffs or change his mind. "As homebuilders, we can't easily adjust our business to such sudden changes," Turner said. "We are getting notices from suppliers every week regarding price increases." Berner said that the direct effect of tariffs on the Austin housing market has not yet been felt, "but as an area with strong new construction activity, the tariffs on Canadian lumber especially will work to drive up the cost of newly built homes in the Austin metro." In recent years, the economist explained, builders in Austin have excelled at delivering affordable new inventory to the city's market, and the median price of a new home in Austin is currently lower than the price of existing homes. That is due primarily to where the new inventory is being built, Berner specified, in outlying areas of the metropolitan area. "This will be jeopardized by tariffs, as builders will be forced to pass on additional costs to new home buyers," Berner said. "What we will see even sooner is the indirect effect of the tariffs on consumer confidence, dampening demand for home purchases and leading to another slow year of home sales in Austin. "Unless mortgage rates drop significantly, we anticipate that depressed homebuyer sentiment will lead to continued price depreciation and low volume of home sales in Austin."
Yahoo
16-04-2025
- Business
- Yahoo
Nearly Every U.S. Metro Has Higher Rental Prices than Pre-Pandemic, Despite Months of Declines
Tariffs on building supplies could threaten continued price declines and damper new multi-family construction activity Markets most at risk from the impact of tariffs: Milwaukee; Oklahoma City; Memphis, Tenn.; Cleveland; Columbus, Ohio; Atlanta; Cincinnati; Birmingham, Ala.; and San Diego AUSTIN, Texas, April 16, 2025 /PRNewswire/ -- For the 20th consecutive month rents declined in March, and the median asking price for rent in the 50 largest metros is now $65 lower than the 2022 peak, standing at $1,694, according to the March Rent Report. While rents have been declining for nearly two years due in large part to new multifamily inventory, new tariffs could have impacts on metros where multi-family permitting activity is growing the fastest, jeopardizing rent declines. "While the median asking rent is down $65 monthly or over $700 annually, in nearly every major U.S. metro rents are still considerably higher than 2019," said Joel Berner, senior economist at "We have seen declines in rents largely due to robust multi-family building and permitting adding more rental options in many metros. This tailwind is currently under threat as developers grapple with the short-term and long-term impacts of new and evolving tariffs on building materials. For renters in cities with declining rents, it might be a good time to lock in a good rate for the next year or beyond." Despite Recent Price Declines, Rents Are Still Considerably More Than Before the Pre-Pandemic This March marked the fifth anniversary of the onset of the global Covid-19 pandemic, and rents across the U.S. largely remain above pre-pandemic pricing. San Francisco remains the only market where the median asking rent is still below pre-pandemic levels. The median rent has risen 20.2%, from $1,409 in March 2019 to $1,694 in March 2025. During this period, Pittsburgh (47.9%) led the Northeast in rental growth, while Tampa, Fla. (45.7%) saw the fastest increases in the South. In the Midwest, Indianapolis (34%) emerged as the fastest growth market, and in the West, Sacramento, Calif. (30.6%) experienced the highest rent hikes. Markets with the Fastest-Growing Multi-Family Permits Face the Greatest Potential Impacts from Tariffs The recently announced tariffs on imported building materials such as steel and aluminum could potentially impact the multifamily housing supply by driving up construction costs. These rising expenses may discourage, delay or halt building and added costs could be passed to renters, pushing rental prices higher. Markets that experienced rapid growth in permitted multifamily homes are expected to see the biggest impacts as developers and builders may postpone or even cancel new projects. Markets such as Milwaukee, Oklahoma City and Memphis, Tenn., which saw the fastest growth in permitted multifamily homes, are expected to be hit the hardest by the 25% tariffs on steel and aluminum due to anticipated higher construction costs. "Even markets with declining permitting activity could see impacts as rising construction costs could further dampen new development plans, restricting supply and continuing to exert upward pressure on rental prices," said Berner. Markets with the Fastest-Growing Multi-Family Permits Markets Multifamily Units Permitted 2024 Multifamily Units Permitted vs 5-year Baseline Milwaukee-Waukesha, Wi 1,884 101.3 % Oklahoma City, Okla. 581 90.4 % Memphis, Tenn.-Miss.-Ark. 1,089 39.5 % Cleveland, Ohio 720 37.9 % Columbus, Ohio 7,195 32.7 % Atlanta-Sandy Springs-Roswell, Ga. 13,937 31.5 % Cincinnati, Ohio-Ky.-Ind. 2,534 29.9 % Birmingham, Ala. 556 22.1 % San Diego-Chula Vista-Carlsbad, Calif. 7,244 18.8 % National Rental Data – March 2025 Unit Size Median Rent Rent YoY Rent Change - 6 Years Overall $1,694 -1,2 % 20.2 % Studio $1,407 -1.2 % 16.2 % 1-Bedroom $1,577 -1.1 % 18.5 % 2-Bedroom $1,878 -1.4 % 22.1 % Market Median Asking Rent YOY Change Atlanta-Sandy Springs-Roswell, GA $1,571 -2.9 % Austin-Round Rock-San Marcos, TX $1,471 -4.5 % Baltimore-Columbia-Towson, MD $1,806 1.1 % Birmingham, AL $1,170 -4.6 % Boston-Cambridge-Newton, MA-NH $2,951 0.4 % Buffalo-Cheektowaga, NY NA NA Charlotte-Concord-Gastonia, NC-SC $1,522 -0.3 % Chicago-Naperville-Elgin, IL-IN $1,787 -2.2 % Cincinnati, OH-KY-IN $1,291 -2.5 % Cleveland, OH $1,161 -3.5 % Columbus, OH $1,204 1.3 % Dallas-Fort Worth-Arlington, TX $1,461 -2.3 % Denver-Aurora-Centennial, CO $1,767 -6.3 % Detroit-Warren-Dearborn, MI $1,311 2.4 % Hartford-West Hartford-East Hartford, CT NA NA Houston-Pasadena-The Woodlands, TX $1,357 -2.0 % Indianapolis-Carmel-Greenwood, IN $1,289 -1.8 % Jacksonville, FL $1,510 -2.8 % Kansas City, MO-KS $1,371 5.3 % Las Vegas-Henderson-North Las Vegas, NV $1,453 -2.3 % Los Angeles-Long Beach-Anaheim, CA $2,709 -2.8 % Louisville/Jefferson County, KY-IN $1,234 -1.5 % Memphis, TN-MS-AR $1,180 -3.0 % Miami-Fort Lauderdale-West Palm Beach, FL $2,326 -1.7 % Milwaukee-Waukesha, WI $1,649 0.7 % Minneapolis-St. Paul-Bloomington, MN-WI $1,491 -1.4 % Nashville-Davidson--Murfreesboro--Franklin, TN $1,525 -2.0 % New Orleans-Metairie, LA NA NA New York-Newark-Jersey City, NY-NJ $2,967 5.6 % Oklahoma City, OK $1,012 1.8 % Orlando-Kissimmee-Sanford, FL $1,679 -0.4 % Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $1,744 -1.9 % Phoenix-Mesa-Chandler, AZ $1,492 -3.7 % Pittsburgh, PA $1,452 -0.1 % Portland-Vancouver-Hillsboro, OR-WA $1,658 -3.3 % Providence-Warwick, RI-MA NA NA Raleigh-Cary, NC $1,477 -3.3 % Richmond, VA $1,489 -0.3 % Riverside-San Bernardino-Ontario, CA $2,063 -3.6 % Rochester, NY NA NA Sacramento-Roseville-Folsom, CA $1,863 -1.8 % San Antonio-New Braunfels, TX $1,239 -1.7 % San Diego-Chula Vista-Carlsbad, CA $2,667 -5.8 % San Francisco-Oakland-Fremont, CA $2,702 -2.9 % San Jose-Sunnyvale-Santa Clara, CA $3,339 2.0 % Seattle-Tacoma-Bellevue, WA $1,960 -1.2 % St. Louis, MO-IL $1,314 -0.2 % Tampa-St. Petersburg-Clearwater, FL $1,738 0.2 % Virginia Beach-Chesapeake-Norfolk, VA-NC $1,493 -0.9 % Washington-Arlington-Alexandria, DC-VA-MD-WV $2,291 2.6 % Methodology Rental data as of March 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the top 50 largest metropolitan areas. began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019. About pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. Media contact: Mallory Micetich, press@ View original content: SOURCE
Globe and Mail
03-04-2025
- Business
- Globe and Mail
Average US rate on a 30-year mortgage dips to 6.64% for the second drop in 2 weeks
The average rate on a 30-year mortgage in the U.S. edged lower for the second week in a row, a modest but welcome boost for prospective home shoppers in the midst of the spring homebuying season. The rate fell to 6.64% from 6.65% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.82%. The average rate has mostly trended lower since reaching just over 7% in mid-January. When mortgage rates decline, they boost homebuyers' purchasing power. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, pulling the average rate down to 5.82% from 5.89% last week. A year ago, it averaged 6.06%, Freddie Mac said. Mortgage rates are influenced by factors including bond market investors' expectations for future inflation, global demand for U.S. Treasurys and the Federal Reserve's interest rate policy decisions. The overall decline this year in the average rate on a 30-year mortgage loosely follows moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield, which was nearing 4.8% in mid-January, has mostly fallen since then, amid signs that the economy is slowing and worries that tariffs imposed by the Trump administration on goods imported from around the globe could hurt economic growth and fuel inflation. The yield slid to 4.06% Thursday as a sharp sell-off on Wall Street following the White House's latest and most severe volley of tariffs fueled expectations among bond investors that the Fed may have to cut its main interest rate if the economy sours. 'The 10-year Treasury has dipped even further this morning as investors are exiting the stock market, so it's likely that mortgage rates will continue to come down in the coming months as a result,' said Joel Berner, senior economist at 'This shock to the system will be felt in the housing market for the rest of the year.' Recent forecasts by housing economists generally called for the average rate on a 30-year mortgage to remain around 6.5% this year. Lower mortgage rates can help spur home sales by make homeownership more affordable. At the same time, many Americans may put off buying a home if they're worried about losing their job or taking a hit on their stock portfolio during an economic downturn. 'It remains to be seen whether relief from mortgage rates will spur buyers to make a move in 2025, or if the broader economic conditions will slow things down,' Berner said. The U.S. housing market has been in a sales slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years. Easing mortgage rates and more homes on the market nationally helped drive sales higher in February from the previous month, though they were down year-over-year. Even with mortgage rates easing this year, rising home prices are helping to drive up the cost of homeownership. The typical monthly payment made by U.S. homebuyers climbed to a record-high $2,802 in the four weeks that ended March 20, according to Redfin.
