Buyers pull back even as rates hold steady

Plus: Mortgage changes in Trump’s first 100 Days

April 30, 2025

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Disclaimer: Average mortgage rates as of April 29, 2025. © MND Daily Rate Index.

1. Buyers pull back even as rates hold steady

According to the MBA, homebuyers are continuing to retreat despite little movement in mortgage rates, as concerns about the economy weigh on demand.

  • Purchase mortgage applications dropped 4% last week compared to the prior week. While volume was 3% higher than a year ago, rates last year were significantly higher.

  • The average 30-year fixed mortgage rate dipped slightly to 6.89% from 6.90%, with points rising to 0.67 from 0.66. This rate is 40 basis points lower than the same week in 2024.

  • Refinance applications also fell 4% for the week but remained 42% higher year-over-year. The average refinance loan size declined to just under $290,000, the lowest in three months.

“Mortgage demand remains subdued amid economic uncertainty and labor market weakness, with purchase activity at its slowest since February,” said Joel Kan, MBA’s deputy chief economist. “Refinance applications also declined as rates stayed near 7%, with borrowers holding out for bigger rate drops”

2. Mortgage ‘policy’ changes in Trump’s first 100 Days

In his first 100 days, President Trump implemented a broad set of mortgage and housing policy changes, focusing on deregulation, agency restructuring, and lending rule revisions. Here are the main developments:

  • CFPB Leadership and Activity: The Consumer Financial Protection Bureau reduced some enforcement actions while continuing core functions. A federal judge temporarily halted efforts to significantly reduce staff.

  • Revisions to Borrower and Consumer Policies: The FHA rescinded a Biden-era appraisal review policy. The FCC postponed a rule restricting auto-dialed marketing calls. The CFPB paused implementation of certain consumer protections, including a rule removing medical debt from credit reports.

  • Eligibility Adjustments for Government-Backed Loans: FHA and USDA will end eligibility for certain non-citizen borrowers—including DACA recipients and work visa holders—starting in May.

  • Changes to Loss Mitigation Programs: The Department of Veterans Affairs will conclude its loan relief option (VASP) on May 1. The FHA plans to phase out a temporary loan modification program by September.

  • Oversight and Enforcement Updates: The FHFA scaled back renter protections and withdrew from enforcing certain unfair practice rules. The CFPB is considering eliminating a registry for repeat nonbank offenders.

  • Construction and Development Regulations: HUD and FHFA postponed or removed certain building requirements, including elevation and energy-efficiency standards, citing cost and regulatory burden concerns.

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3. More Nuggets

📉 VantageScore mortgage usage plunged 42% in 2024. (HousingWire)

🏡 Compass CEO: New homes are getting cheaper than existing homes. (CNBC)

📰 New bill aims to give first-time homebuyers an advantage. (Gov)

🛩️ How to: fold a paper airplane.​​ (Fold ’N Fly)

📸 Latest cool trick for ChatGPT is to ask it to work out the location of a photo. (SW)

4. Anywhere: Agent commissions largely unchanged

Nearly nine months after new commission rules from a major legal settlement took effect, Anywhere Real Estate says agent commission rates have barely changed.

CEO Ryan Schneider told investors that average commission rates declined only slightly in the first quarter of 2025—down by 2 basis points to 2.41% in the company’s franchise segment and by 6 basis points to 2.35% in its owned brokerage segment.

“We’ve now had three quarters in a row here where there really hasn’t been that much movement, frankly, less than we had predicted when we did our budget for this year” Schneider told investors.

5. New home sales rise in March

New single-family home sales rose 7.4% from February and 6% year-over-year to a seasonally adjusted annual rate of 724,000, according to Realtor.com. The increase was driven by strong demand for lower-priced homes.

Key Highlights:

  • Median sales price fell to $403,600, down from $411,500 in February and $436,400 a year ago.

  • Sales of homes under $300,000 and between $300,000–$399,999 increased.

  • The South led the market, accounting for about two-thirds of all new-home sales and was the only region to post annual growth (+22.3% YOY).

  • Other regions declined YOY: the Northeast (-33.3%), West (-12.2%), and Midwest (-15.9%). Month-over-month, the Midwest rose slightly (+3%), while the Northeast saw a steep monthly drop (-22.2%).

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☀️ You’re all caught up. See you on Friday!

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