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From Yahoo Finance: 2025-03-26 11:03:00

The U.S. housing market faces challenges with high mortgage rates and low supply. Home prices have surged, with the average 30-year fixed mortgage rate at 6.71%. Median home prices are up 3.8% to $398,400, making it tough for buyers to afford homes. Home-insurance costs rose 25%.

Tariffs on building materials like lumber and copper add to the costs of new homes. The National Association of Homebuilders estimates tariffs will add $9,200 to the cost of a new build, currently around $414,500. Uncertainty about trade policy is hurting homebuilders and buyers, impacting market sentiment and development decisions.

Leading U.S. homebuilder Lennar Corp. reports slowed demand in the new-home market due to consumer confusion and wavering confidence. Supply shortages and high construction costs are also hindering production. Existing home supply is increasing, but sales remain slow. The housing market is expected to stay subdued in 2025.

Read more: Homebuyers jammed up by stubbornly high mortgage rates, tariff threats