#USHouseMarketStructureDraft

U.S. Housing Market Overview (2025 - Draft Summary)

Market Conditions: The U.S. housing market remains tight, with low inventory levels continuing to drive competition among buyers despite elevated mortgage rates.

Home Prices: Prices have stabilized in some regions but remain high in major metro areas due to supply constraints and persistent demand.

Interest Rates: Mortgage rates are hovering around 6.5%–7%, impacting affordability and reducing refinancing activity.

Inventory & Supply: New construction has picked up slightly, but labor shortages and high material costs are limiting faster growth in housing supply.

Buyer Behavior: First-time buyers are challenged by affordability issues, while cash buyers and investors maintain a presence in competitive markets.

Regional Trends: Sun Belt states continue to see population inflows, while some West Coast markets are experiencing slower growth or slight declines.

Outlook: If interest rates decline later in the year, a modest rebound in activity could occur. Otherwise, expect a continued gradual normalization.