US housing: mixed signals

U.S. homebuyers pulled back from existing homes in March even as mortgage applications for newly built homes hit the highest level in Mortgage Bankers Association survey history. (nar.realtor) (mba.org) Existing-home sales fell 3.6% from February to a seasonally adjusted annual rate of 3.98 million in March, the National Association of Realtors said April 13. Sales were down 1.0% from March 2025 and declined in all four U.S. regions from the prior month. (nar.realtor) At the same time, the Mortgage Bankers Association said April 14 that applications for mortgages to buy newly built single-family homes rose 11% from a year earlier and 26% from February. Joel Kan, the group’s deputy chief economist, said the March reading was the highest index level since the Builder Application Survey began in 2012. (mba.org) The split comes as borrowing costs moved higher through March. Freddie Mac’s average 30-year fixed mortgage rate rose from 6.00% on March 5 to 6.38% on March 26, after sitting below that level in late February. (freddiemac.com) Existing-home sales depend on owners deciding to list, and that supply is still tight. The National Association of Realtors said inventory rose to 1.36 million homes in March, but Lawrence Yun said the market would need another 300,000 to 500,000 listings to get closer to normal conditions. (nar.realtor) Builders had more product ready to sell. Kan said higher levels of unsold inventory in many markets, including move-in-ready homes, helped lift demand for new construction in March even as rates increased and economic uncertainty grew. (mba.org) Price also split the market. The median existing-home price rose 1.4% from a year earlier to $408,800 in March, a record for that month and the 33rd straight month of annual price gains. (nar.realtor) On the financing side, government-backed loans took a larger share of new-home demand. The Mortgage Bankers Association said Federal Housing Administration, Department of Veterans Affairs, and United States Department of Agriculture loans made up more than half of new-home applications for a third straight month, while Federal Housing Administration rates rose more slowly than conforming loan rates. (mba.org) Consumer mood remains part of the drag. Fannie Mae’s Home Purchase Sentiment Index tracks views on whether it is a good time to buy or sell, where prices and mortgage rates are headed, job-loss concerns, and household income changes; Yun said lower consumer confidence and softer job growth held back March resale demand. (fanniemae.com) (nar.realtor) The March numbers leave a housing market with two different speeds: owners are listing slowly, builders are filling some of the gap, and buyers are showing up where monthly payments and available homes line up. (nar.realtor) (mba.org)