Mortgage Applications Are on the Rise

In the week of March 10, 2025, we've seen some exciting news in the mortgage market: purchase mortgage applications jumped up by 9%. This increase is a good sign as we head into the spring home buying season, and it looks like more people are looking to buy homes compared to last year. Spending on residential construction has also held steady, just a bit below last month but still over 3% higher than a year ago. Plus, there are 27.5% more homes for sale than this time last year, which is great for buyers. This marks the 16th month in a row that inventory has increased, and we’re seeing more new listings with median home prices dropping a bit.

On the flip side, the stock market had a rough week. Concerns about tariffs and the overall economy caused the major stock indexes to decline. Even though tariffs on Canada and Mexico were delayed, worries about weak corporate earnings and slower manufacturing activity weighed heavily on traders.  However, there was a silver lining: the average rate for a 30-year fixed mortgage fell significantly, marking the biggest drop since mid-September. This could mean better borrowing conditions for those looking to buy homes.

Looking ahead, I’m curious to see what happens next week. We’ll be keeping an eye on mortgage applications, inflation rates, and consumer sentiment. Economists expect inflation to slow down for February, which might help boost consumer confidence, as shown in the University of Michigan's preliminary survey. As for the Federal Reserve, it seems they won’t be cutting rates until June, with the current rate sitting between 4.25% and 4.50%. Overall, while the mortgage market is showing some positive signs, the broader economy still has its challenges.