Less Building. More Pressure. What’s Your Move?
April 2025 Housing & Mortgage Update | The Mortgage Gurus
There’s a lot happening behind the scenes in the housing market right now—and it’s leaving many buyers wondering, “Should I wait?” If you’re feeling unsure, we hear you. That’s why we’re breaking it all down in a way that makes sense, without the fluff or fear.
Let’s take a closer look at what’s going on—and what it means for you.
Homebuilding Took a Step Back
In March, new home construction dropped by over 11%, the biggest decline we’ve seen in a year. Builders are especially slowing down on single-family homes—many are hesitant to start new projects because of rising material costs and economic uncertainty.
On the flip side, permits for future construction actually increased slightly, which shows some optimism long-term. And while more homes were completed, we’re still not building fast enough to meet demand.
New Home Construction dropped sharply in March 2025, with Housing Starts falling more than 11%.
What this means for you:
There are fewer new homes hitting the market, but demand for housing hasn’t gone away. That imbalance can help support home values, even as other parts of the market shift.
Builder Confidence Is Still Low
Home builder confidence went up a tiny bit in April, but it's still under the threshold that signals optimism. Builders are feeling cautious about the future—especially when it comes to sales and buyer interest.
The NAHB Builder Sentiment Index remains below 50, showing cautious expectations among builders.
What this means for you:
With builders hesitating, inventory may stay tight, which means having a clear game plan as a buyer is more important than ever.
The Bigger Picture
Other economic updates are also influencing mortgage rates and housing activity:
Retail sales rose more than expected, possibly due to shoppers trying to beat upcoming tariffs.
The Fed is focused on fighting inflation, meaning they’re unlikely to lower interest rates soon.
Housing starts are down, but completions are helping balance inventory somewhat.
Jobless claims dropped, but long-term unemployment is still a concern.
What This Means If You're Buying
We know the headlines can feel overwhelming. But here’s the good news:
If you’re prepared, you’re in a strong position.
Right now:
Some buyers are still waiting on the sidelines
Interest rates are manageable
There’s less competition in many areas
If buying a home is one of your goals this year, we’re here to guide you through the process step by step—with clarity, care, and confidence.
Let’s Talk Strategy
Every buyer’s situation is different. Whether you’re just getting started or ready to get pre-approved, let’s create a plan that makes sense for you.
Click here to schedule a call with one of our mortgage experts. We’ll walk you through the market, your numbers, and your best options—no pressure, just real help.
Source: MBS Highway, US Census Bureau, HUD, NAHB
Graphics repurposed for educational use with credit.
