Spring housing supply is the highest in five years.

High home prices and mortgage rates are joined by plenty of economic uncertainty.

Four out of five prospective buyers won’t act until mortgage rates fall further, a recent U.S. News & World Report survey found.

The average 30-year fixed-rate mortgage shot up to nearly 8% in late 2023. It fell to just above 6% last fall, bounced back above 7% in mid-January, and declined again recently.

Tariffs and higher mortgage interest rates are at the top of the list.

They’re starting 2025 at the highest they’ve been since last summer.

If the housing market is a roller coaster, mortgage rates are at the controls. If they drop, things could speed up.

Pending sales were up 2.2% in November.

With the “lock–in effect” shrinking inventory, 1.7 million fewer homes were sold between 2022 and 2024, per a federal housing study. 

Stabilizing interest rates and moderating home prices are among the positive predictions in the Realtors’ report. Some see risks to that scenario.