1. Homebuyer demand heats up
While home sales fell 4.9% in January—continuing a broader market slowdown, according to The Wall Street Journal—buyer demand is showing signs of recovery. Mortgage applications have increased compared to last year, signaling renewed interest from prospective buyers.According to the Mortgage Bankers Association (MBA), mortgage applications rose 11.2% on a seasonally adjusted basis for the week ending March 7, 2025. This uptick suggests that buyers are re-entering the market, likely encouraged by stabilizing interest rates and growing inventory.Moreover, Zillow reported a 9.1% increase in newly pending listings in February compared to the previous month. The median days to pending—the typical time from listing to contract—fell to 23 days in February, a decrease of 15 days from the prior month.2. Rates drop ahead of the spring homebuying season
Earlier this month, mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67%—the lowest level since October 2024.As of Tuesday, March 25, 2025, the current average interest rate for a 30-year, fixed-rate conforming mortgage loan in the U.S. is 6.569%, according to data available from mortgage data company Optimal Blue. While rates have continue to fluctuate, they remain in the 6% range, providing relief to buyers who had been sidelined by above 7% rates and higher borrowing costs.3. Inventory increases, but remains below pre-pandemic levels
Housing inventory is on the rise, giving buyers more options in many markets. According to Realtor.com, national active listings increased 27.6% between February 2024 and February 2025, shifting some seller’s markets toward a more balanced environment.However, inventory remains 23.1% below February 2019 levels, meaning buyers in certain regions—particularly parts of the Midwest and Northeast—are still facing tight resale markets with limited options.As we move further into spring, these market dynamics will continue to evolve. Whether you’re considering co-ownership or exploring new real estate opportunities, we’re here to help you navigate the trends.Market spotlight: Carolinas
