Existing-home sales stumbled in January, falling 4.9 percent from December to an annualized pace of 4.08 million, a sharper drop than the 2.6 percent decline economists had expected. The start of 2025 continues a prolonged period of weakness in home The post Housing Market Struggles as High Prices and Mortgage Rates Weigh on Buyers appeared first on Breitbart.
The housing market in early 2025 faces challenges with high prices and mortgage rates, leading to weak home sales despite a 2% year-over-year increase. The median home price reached a record $396,900 in January. Affordability issues persist as 30-year mortgage rates averaged 6.85%, affecting first-time buyers, who accounted for only 28% of purchases. Cash buyers (29%) and investors (17%) dominate transactions. Homes take longer to sell, averaging 41 days, though high-demand areas see bidding wars. The Federal Reserve is unlikely to cut rates soon, maintaining affordability challenges. Realtors hope for a stronger spring market, but if rates remain high, the housing sector may face continued constraints.