Buyer hesitation tempers spring housing market despite expanding inventory and slight rate relief
Mortgage rates inched lower this week, offering potential relief to buyers entering the spring housing market. Yet, despite improved affordability on paper, economic concerns continue to weigh on buyer confidence and slow housing activity.
The 30-year fixed-rate mortgage averaged 6.64% as of April 3, down slightly from 6.65% the previous week, according to Freddie Mac. At this time last year, the 30-year rate was higher at 6.82%.
The 15-year fixed-rate mortgage also declined to 5.82%, compared to 5.89% last week and 6.06% a year ago.
“Over the last month, the 30-year fixed-rate has settled in, making only slight moves in either direction,” Freddie Mac chief economist Sam Khater said in the report. “This stability is reassuring, and borrowers have responded with purchase application demand rising to the highest growth rate since late last year.”
Still, that demand may not be evenly reflected across markets. While some buyers are returning, others remain on the sidelines.
“Mortgage rates went up and down in the last week, ending up with not much of a change,” noted Holden Lewis, home and mortgage expert at NerdWallet. “Markets were in wait-and-see mode regarding the imposition of higher taxes on goods from other countries.”
Spring surge
The latest March Housing Trends Report from Realtor.com showed signs of renewed activity from sellers, with total inventory climbing for the 17th consecutive month. Newly listed homes rose 10.2% year-over-year, while active listings increased 28.5%, marking the strongest March in three years.
At a local level, all of the 50 largest metro areas posted annual inventory gains. Markets with the biggest jumps included San Jose (+67.9%), Las Vegas (+67.8%), and Denver (+67.3%).
Despite the influx of inventory, pending home sales declined. The number of homes under contract dropped 5.2% year-over-year in March across major metro areas, reflecting a cautious mood among prospective buyers.
“The spring housing season is beginning with more sellers and a growing number of homes for sale,” said Danielle Hale, chief economist at Realtor.com. “But the high cost of buying coupled with growing economic concerns suggest a sluggish response from buyers in early spring.”
Hale added that while more options are becoming available, sellers may need to adjust expectations.
“Data also suggest that pricing competitively is key for sellers in today's environment. This is likely to be even more true after the mid-April Best Time to Sell, when the number of sellers grows even more swiftly,” Hale said.
Buyer hesitation
The national median list price remained largely unchanged at $422,450, down just 0.1% year-over-year. However, 17.4% of active listings included price reductions in March, the highest for any March since 2016—indicating growing flexibility among sellers in response to tempered buyer enthusiasm.
For buyers, the shift may offer room to negotiate in certain markets. In contrast, areas with stronger demand still support firm pricing, as long as sellers remain in line with local trends.
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Broader sentiment may also be cooling. NerdWallet’s 2025 Home Buyer Report found that 54% of Americans feel there is too much pressure to own a home. Additionally, 64% said homeownership no longer carries the same weight as a financial milestone as it once did.
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