Spring housing market slows as high mortgage rates and global tensions sideline buyers

The typically busy spring housing market is showing signs of slowing down as economic uncertainty and higher mortgage rates keep many buyers on the sidelines.

New data shows existing home sales dropped to a nine-month low, reflecting a cooling market during what is usually peak homebuying season. Rising borrowing costs—driven in part by global tensions—have made many potential buyers hesitant to commit to large purchases.

Mortgage rates, which briefly dipped below 6% earlier this year, have climbed back up to around 6.3%. While that’s still lower than this time last year, it remains high enough to impact affordability and reduce demand.

As a result, some sellers are rethinking their plans. Homeowners who were preparing to list are now holding off, hoping for more favorable conditions and increased competition among buyers.

Others are adjusting expectations. In some cases, sellers are accepting lower offers or settling for breaking even, especially if they need to relocate quickly.

However, the slowdown is not happening everywhere. In markets where housing inventory remains tight, competition is still driving prices upward. The median home price reached a record high for March at just over $408,000, even as overall activity slowed.

Experts say the market is in a delicate balance. While easing mortgage rates and improving economic conditions could give the season a late boost, uncertainty continues to weigh heavily on both buyers and sellers.

For now, the spring housing market remains unpredictable, with many waiting to see if conditions improve before making a move.

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