Diana Olick of CNBC reports that the average 30-year fixed mortgage rate surged 13 basis points to 7.1% on Friday—the highest level since February—driven by volatility in the bond market after sweeping new tariffs took effect, including a 145% tariff on Chinese imports. Despite a cooler-than-expected inflation report, this spike in mortgage rates comes and coincides with a significant drop in consumer sentiment, where inflation expectations jumped to 6.7%—the highest since 1981.

Source: Freddie Mac (April 2025)

Jiayi Xu of Realtor.com reports on rates, highlighting that the average 30-year fixed mortgage rate climbed 21 basis points to 6.83% last week, driven by a sharp rise in 10-year Treasury yields to 4.5% amid investor anxiety over global trade tensions and tariffs. Although yields have slightly cooled to 4.3%, uncertainty looms over inflation and the Fed’s next move. In the housing market, sellers are growing restless—78% expect rates to stay high or rise further within the year.

“While many homeowners still feel “locked in” by elevated mortgage rates, their patience is wearing thin. According to a recent Realtor.com survey, 78% of potential sellers expect interest rates to either remain the same or rise in the next 12 months—suggesting that waiting may not pay off. As a result, we’re seeing an ongoing rise in new listing activity, especially as we are in what is the best week of the year to sell.”

As such, Diana Olick of CNBC reports in a second article that homebuyers are increasingly turning to riskier adjustable-rate mortgages (ARMs), with ARM applications hitting their highest share since November 2023. Total mortgage applications fell 8.5% last week, and purchase applications dropped 5%, despite inventory being 30% higher than last year. With economic uncertainty and volatile rates driven by ongoing tariff tensions, borrowers seek lower initial payments, pushing nearly a quarter of loan volume toward ARMs.

That said, Samantha Delouya of CNN reports that while rates remain below the 7.1% peak seen a year ago, Freddie Mac’s chief economist Sam Khater notes that purchase application demand is currently 13% higher, suggesting a surprisingly resilient spring homebuying season despite the turbulence in financial markets.

Zillow

James Rodriguez of Business Insider (subscription required) reports that Zillow has ignited a firestorm in the real estate industry with a new policy banning listings that first appear privately, targeting the growing trend of “exclusive inventory” ostensibly hoarded by large brokerages like Compass. The rule mandates that once a home is publicly visible, it must be listed on Zillow and shared through the MLS within a day or risk being blacklisted. While Zillow frames this as a move toward transparency and consumer fairness, critics, including CoStar CEO Andy Florance and startup founders, see it as a desperate power grab to retain market dominance. 

Lance Lambert of Fast Company reports that  Zillow frames the decision as a pro-consumer stance—“If a listing is online, it should be online everywhere”—but critics call it a retaliatory “power play” that punishes sellers and limits listing flexibility. While Zillow attempts to stem the growing influence of private networks, the policy has already intensified the so-called “portal wars” with competitors like Homes.com and Realtor.com, exposing deep rifts over who controls the future of home shopping.

Brooklee Han of HousingWire reports that Zillow’s move is a preemptive strike to enforce the struggling Clear Cooperation Policy. The change requires sharing any publicly advertised home across MLS systems and IDX feeds, including Zillow, within a day of its initial promotion. This aggressive stance challenges the recent flexibility introduced by NAR’s Multiple Listing Options for Sellers. 

Further, Claire Boston of Yahoo! Finance reports that Redfin is joining Zillow in banning publicly marketed listings before being added to the MLS, escalating the industry’s battle over “pocket listings.” Redfin CEO Glenn Kelman stated the company will no longer display homes violating the 24-hour rule for MLS syndication, aligning with the Clear Cooperation Policy to increase transparency.

Home prices

Dana Anderson of Redfin News reports that U.S. home-price growth is slowing significantly, with the median home-sale price rising just 2.6% year-over-year for the four weeks ending April 13, down from 5% to 6% at the end of 2024. Prices have declined in 10 of the 50 largest U.S. metro areas, mainly in Texas and Florida. A surge in supply drives the softening market—new listings are up 11.2% and total inventory is up 12.3%—while demand falters due to record-high housing costs and widespread economic uncertainty.

Lily Katz, also of Redfin, reports that homes are selling at the slowest pace in six years. The typical home under contract in March sat on the market for 47 days—the longest for any March since 2019. Only 27% of homes sold above asking price, the lowest March figure since 2020, while just 41% went under contract within two weeks, down from nearly two-thirds during the pandemic peak. 

Source: Redfin (April 2025)

Fannie Mae reports that U.S. single-family home prices rose 5.2% year-over-year in Q1 2025, nearly identical to the 5.3% annual growth recorded the previous quarter, according to the Fannie Mae Home Price Index (FNM-HPI). On a quarterly basis, home prices increased 1.4%. The FNM-HPI, which excludes condos and reflects national trends through aggregated county-level data, continues to show steady appreciation in the housing market despite growing concerns over affordability and economic headwinds.

Skylar Olsen of Zillow reports that home values flattened in March 2025 as seller activity outpaced buyer demand during peak home shopping season. The average home price in March 2025 was $359,741. Further, over 375,000 new listings hit the market—a 9% increase year-over-year—yet pending sales held flat, creating a 110,000-listing surplus and pushing total inventory to 1.15 million homes, the highest March level since 2020.

Finally, Zillow forecasts a 1.9% decline in home values for 2025, reversing its earlier projection of slight growth. Elevated mortgage rates and rising inventory give buyers more leverage and push sellers to cut prices. Existing home sales are expected to increase by 3.3% to 4.2 million, with a spring bump likely followed by a seasonal cooldown. Zillow predicts mortgage rates will end the year around 6.5%, barring major shocks.