Mortgage rates have reached their highest level in three weeks, pushing home sales to new lows. The 30-year fixed-rate mortgage averaged 6.89% for the week ending May 29, according to Freddie Mac. This increase is attributed to volatile financial markets stifling the housing market.
The Mortgage Bankers Association reports that higher mortgage rates have reduced borrower demand, with both refinance and purchase applications declining last week. The spring selling season has started slow, with April sales setting a record low for the month since 2009.
Home contract signings also fell 6.3% in April, indicating that May and June sales will likely be lower due to contracts being signed six weeks before closings. However, the deep freeze caused by “mortgage rate lock” has thawed more quickly than expected.
Despite this, sellers may have unrealistic expectations about home prices, with the typical listed price at a record high of $469,729, 9% above the actual sale price of $431,057, according to Redfin analysis. Homebuyers today have the upper hand due to their dominance over sellers.
Source: https://eu.usatoday.com/story/money/personalfinance/real-estate/2025/05/29/mortgage-rates-rise-home-sales-fall/83923383007