The US housing market has been slow for two years, with low residential building permits, mortgage applications, and home sales. High mortgage rates and high home prices are the main reasons. Although mortgage rates have decreased from 7.4% to 6.7%, they remain high, deterring potential buyers. Despite this, demand persists due to millennial household formation and a housing shortage of three to five million units.
Source: Mortgage Bankers Association, March 2025.