**Housing Market Rebound Stalled by Trade Tariffs**

As 2025 got underway, signs of a revitalized housing market began to emerge. Inflation was easing, the economy appeared robust, and mortgage rates were on a downward trajectory. By April, the number of available homes reached its highest level since January 2020, according to the Federal Reserve of St. Louis. The stage seemed set for eager buyers to re-enter the market, and sellers were becoming more open to negotiations.

However, a major policy shift on April 2 with the introduction of extensive global trade tariffs by President Trump sent shockwaves through the financial markets. Concerns about a potential recession were reignited, causing mortgage rates to spike. By May 29, the rate for a 30-year fixed mortgage soared to 6.89 percent, the highest it had been since early February. This sudden volatility dampened the budding market momentum, and many prospective buyers backed out.

"There isn't any urgency to buying right now - if anything it feels more risky to put a down payment into a home when you might not have a job six months from now," explained Daryl Fairweather, Redfin's chief economist. The uncertain economic climate, paired with rising costs for mortgages, insurance, and property taxes, has created a challenging environment for both buyers and sellers.

Real estate agents nationwide are observing a noticeable slowdown. Sellers are reluctant to lower their asking prices, while buyers are hesitant to make significant financial commitments amid economic uncertainties. Even in areas with decreasing prices and increasing inventory, such as Austin, Texas, homes are lingering on the market for extended periods. In typically competitive regions like the New York City suburbs, where prices continue to climb, properties that would have attracted numerous offers previously are now receiving only a handful.

The impact is also felt in traditionally quick-selling locales like Maplewood, N.J., where homes often sell above the listed price. "Yes, there is more inventory, but it's almost like too little too late," noted Selma Hepp, the chief economist for real estate data provider Cotality, indicating that the increased availability may not be enough to counterbalance the prevailing economic fears.