Average rates remained relatively flat throughout March, continuing weekslong narrow path as bond yields undulate with traders’ economic concerns.

The current rate stability is expected to draw more buyers back into the purchase market in late spring or early summer.

The weekly average mortgage rate dipped to its lowest level of the year in March. Additionally, home prices are slowing. The median U.S. home-sale price rose just 3.7% year over year, the smallest increase since September. The median sale price of a home in the United States was $418,478.

Sales of both new and existing homes rose in February, and inventory is on the rise. As of February 19, there were more than 1.55 million homes for sale nationwide, up 11.7% from the previous year. The housing supply now sits at five months, the highest since early 2019 and up from 4.4 months a year ago.

Historically, the ideal time to list a home for sale is approaching in the next few weeks. Sellers who list during this window can expect more attention and quicker sales.
Despite these positive numbers, however, surveys show many potential homebuyers are still on the fence.

Affordability continues to be the most significant hurdle. Home prices have surged by 38% the past five years, and though mortgage rates are steady, they are twice as high as pandemic lows. Monthly payments are double what they were in 2019.

Overall home prices are still rising, though they varied regionally. Home prices increased in the Northeast and Midwest, while generally falling in the South and Southeast.

In more positive news: Price reductions are seeing an unusual uptick, reaching their highest share since 2017. New construction outpaced household formations for the first time since 2016, offering hope for closing the housing supply gap.