May 06 2025

Reef Daily

Reef Daily | May 06 2025

Housing Market Update

Latest Market Data (May 6, 2025) U.S. house prices rose 0.1 percent in February, according to the FHFA House Price Index released today. House prices rose 3.9 percent from February 2024 to February 2025. The previously reported 0.2 percent price growth in January was revised upward to 0.3 percent.

For the nine census divisions, seasonally adjusted monthly home price changes ranged from -0.8 percent in the Pacific division to +1.3 percent in the New England division. All 12-month changes were positive, ranging from +0.9 percent in the Pacific division to +7.0 percent in the Middle Atlantic division.

A new report released today indicates that the price difference between new and existing homes has narrowed considerably in the first quarter of 2025, with just a $14,600 difference, which is modest by historical standards.

Mortgage Rates

Type	Today's Rate	Last Week's Rate
30-year fixed	6.83%	6.88%
15-year fixed	6.01%	6.09%
5/1 ARM	6.24%	6.10%

Future Forecasts Mortgage rates ticked higher today as the Federal Reserve began its two-day policy meeting. It's widely expected the Fed will pause any change to the federal funds target rate, maintaining the range of 4.25% to 4.50%. Housing authorities like Fannie Mae expect rates to slowly drift closer to 6.2% by the end of the year rather than seeing significant drops immediately.

Notable Transactions

Commercial Highlights Mushmel Properties has purchased the 54,946-square-foot Ralphs at Market Lofts retail space in Los Angeles for $20.9 million, or $380.36 per square foot. The Los Angeles investment firm structured its purchase as part of a tax-deferred exchange.

Market Indicators

Labor Market Trends The National Federation of Independent Business (NFIB) released its April Jobs Report today, revealing that 34% of small business owners reported unfilled job openings in April. Despite this figure indicating continued hiring challenges, labor quality remains a significant concern for small businesses nationwide.

Regional Developments

Northeast The Middle Atlantic division led the nation with a 7.0% year-over-year home price increase according to today's FHFA House Price Index report, while the New England division saw the highest monthly gain at 1.3%.

West The Pacific division recorded the lowest annual price growth at just 0.9% and showed the only regional monthly decline at -0.8%, according to today's FHFA data.

State-Level Activity NFIB Nevada reported that small business owners met with lawmakers and elected officials today as part of their annual Small Business Day, addressing concerns relevant to real estate and development markets.

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.