Market Activity, Housing Payments Increase
The typical U.S. homebuyer's monthly housing payment hit an all-time high of $2,807 during the four weeks ending March 23, up 5.3% from a year earlier. However, this isn't deterring market activity. Mortgage-purchase applications are at their highest level since early February, the numbers of home tours are rising faster than last year, and Google searches of "homes for sale" are at their highest level since August.
Currently, sellers are entering the market faster than buyers, with new listings up 7.5% year over year—the biggest increase so far this year. If this trend continues and mortgage rates decline, we may see pending sales improve in the coming months.1
Introducing California's First Wildfire-Resistant Community
As California recovers from more devastating wildfires, builder KB Home recently introduced its first wildfire-resistant community. The development is in Escondido and will offer 64 single-family homes that meet wildfire resilience standards set by the Insurance Institute for Business & Home Safety (IBHS).
The homes feature covered gutters, enclosed eaves, noncombustible siding, tempered-glass windows, and non-combustible patios, doors and roofing. Metal fencing is used throughout the neighborhood and homes are spaced at least 10 feet apart.
Before KB Homes introduced this community, homes built to fire-resistant standards were usually custom-built. During January's Palisades fires, some of these homes remained unscathed while others nearby were destroyed.
Another advantage provided by fire-resistant homes is the hope that owners will find it easier to obtain homeowners' insurance for their purchases.2
Home Prices Accelerate in Northern Metro Areas
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the prices of existing homes across the nation, rose 4.1% in January year-over year. This was a slight increase from December 2024's 4% annual gain. On a month-over-month, seasonally adjusted basis, home prices rose 0.6%.
The 20-City Composite Home Price NSA Index reported that New York saw the strongest price appreciation over the previous year, followed by Chicago and Boston. Home prices in Tampa fell 1.5% over the year, which was the weakest return in the 20 cities covered by the index.
While new construction starts rebounded in February, builders' concerns about tariffs are growing. Total housing starts rose 11.2% to 1.50 million annualized units in February. Builders have stepped up their use of mortgage rate buydowns and other incentives to soften the impact of higher rates on their customers. Let me know if your clients could benefit from some of the lending incentives we offer here at .3
More Rate Cuts, Inflation Predicted
Analysts at global investment firm Goldman Sachs are now predicting that the Federal Reserve will cut interest rates three times in 2025 and also announced that their predictions of a recession had risen to 35%.
Analysts now expect the Fed to cut rates in July, September, and November amid the looming threat of a trade war fueled by US and retaliatory tariffs. Inflation is also expected to rise, while end-of-year unemployment is projected to spike by 0.3% to 4.5%.
Consumer confidence has taken a hit in recent weeks. According to a new poll released by the University of Michigan, confidence has hit its lowest level for over two years, diving by 28% when compared to last year's numbers.4
How To Schedule TikTok Posts for Maximum Views
Considering that the app is visited by 136 million active viewers in the US every month, you may want to prepare and schedule some new TikTok posts. You can maximize your views by following this schedule that reflects the most popular viewing times for each day of the week.
- Mondays: Noon to 5 p.m.
- Tuesdays: 5 p.m.
- Wednesdays: 2 to 5 p.m.
- Thursdays: 3 to 5 p.m.
- Fridays: 5 p.m.
- Saturdays: 9 to 11 a.m. and 5 p.m.
- Sundays: 8 a.m. to 5 p.m.
Sources: 1redfin.com, 2cnbc.com, 3kiplinger.com, 4mpamag.com, 5socialmediatoday.com
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