US Housing Market Shows Signs of Recovery as Spring Buying Season Arrives

The US housing market has been weighed down by high home prices and mortgage rates, straining affordability and cooling sales. As the traditional spring buying season gets underway, First American has seen some markets begin to thaw. Improving affordability is also supporting a rebound in demand, offering an important signal of a housing recovery.

First American’s latest analysis showed that US home-buying affordability improved 10% year on year in February. Mortgage rates rose to about 6.38% in March amid conflict in the Middle East, potentially slowing the spring pickup in transactions slightly. Experts, however, expect the impact to be limited and insufficient to reverse the housing market’s broader trend of gradual recovery.