Tariff announcements have pushed mortgage rates to 7%, presenting a potential challenge for home sales despite a year-over-year inventory gain. Chief Economist Lisa Sturtevant predicts slower growth in home prices compared to previous years. Major cities continue to show strong price increases, especially in the Midwest, while areas like Florida experience sluggish growth. Buyers have gained leverage due to increased inventory. Economic impacts from tariff policies may affect homeowner sentiment and purchasing trends over the coming months, influencing market dynamics.
While data for April from other reports doesn't show much impact, uncertainty around trade policy and subsequent economic headwinds will likely have a long-tail effect.
Home prices in major cities continue to drive the national increase in the index. The 10-city composite index is up by 4.76% annually and the 20-city index is up 4.07%.
More inventory has been coming onto the market, which gives buyers more leverage and room for negotiation.
Three of the four cities with the highest annual gain are in the Midwest, with Chicago (6.5%), Cleveland (5.9%) and Detroit (5.77%) leading the way.
Collection
[
|
...
]