As of June 18, 2025, the U.S. housing market is struggling with high mortgage rates and declining builder sentiment. This situation creates difficulties for potential homeowners and stakeholders. The global impact includes reduced home sales and economic uncertainty.
The average 30-year fixed mortgage rate slightly decreased to 6.84% this week, down from 6.85% the previous week. The 15-year fixed-rate mortgage also decreased to 5.97%. Pending home sales in April dropped 6.3% from March.
Builder sentiment declined, with the NAHB index falling to 32 in June, the lowest in two and a half years. High mortgage rates and economic uncertainty are major factors. 37% of builders cut prices in June. The source of this information is the provided text.
Economists predict mortgage rates will stay between 6% and 7% throughout 2025. The Federal Reserve paused its interest rate reduction cycle. The market faces challenges for buyers and sellers.