Market Update | June 2, 2025

Mortgage rates climb, inflation cools, and home sales dip as market uncertainty and policy concerns persist.

Treasury yield increase drives mortgage rates higher in May

• 30-year mortgage rates averaged 6.82% in May, up 9 basis points from April.
• Moody’s credit downgrade and a weak 20-year Treasury auction spurred rate hikes.
• Concern over the $1.9T deficit being intensified by “One Big Beautiful Bill” may push borrowing costs even higher.

Read more at NAHB Eye on Housing

Inflation is almost at 2%. Will that prompt a Fed rate cut?

• April inflation slowed to 2.1% annually, down from 2.3% in March.
• Housing remains the largest driver of consumer spending.
• Tariff uncertainty may delay rate cuts, despite signs of easing inflation.

Read more at HousingWire

Existing-home sales edged lower by 0.5% in April

• April existing-home sales fell 0.5% to 4.00 million units, down 2% year-over-year.
• Median home price hit $414,000, up 1.8% from April 2024, a record high for the month.
• Inventory rose 9% from March to 1.45 million homes, a 20.8% annual increase.

Read more at NAR