ICE’s Andy Walden on the early spring housing market
Mar 25, 2025
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Andy Walden, Head of Mortgage and Housing Market Research at ICE, brings his expertise to discuss the early spring housing market. He highlights rising inventory levels that offer more options for buyers and notes a slight decline in interest rates improving affordability. Walden analyzes current trends, including regions with varying conditions, and delves into the effects of economic indicators on mortgage rates. He also examines the impact of lower rates on buyer demand amidst recessionary pressures, providing insights into navigating uncertainties in the housing landscape.
The early spring home-buying market is notably improving with a 27% increase in inventory, enhancing buyer options and market dynamics.
Gradual easing of home prices, particularly in the southeastern U.S., indicates a shift in geographic pricing disparities and potential stability.
Deep dives
Inventory Growth and Market Dynamics
The spring home buying market is showing promising signs with a notable increase in inventory, presenting buyers with more options for houses. Inventory levels have risen by 27% compared to the previous year, which is the highest growth seen in nearly five years. This increased availability of homes could potentially lead to softer price dynamics, providing a much-needed balance between supply and demand. Additionally, recent decreases in average 30-year interest rates may enhance affordability for homebuyers, offering a favorable environment as they navigate spring's market.
Shifting Home Prices
Home prices are experiencing a gradual easing, with a reported growth of only 3.4% in the previous year, marking the slowest increase since 2011. This trend is expected to continue into 2025, particularly in the southeastern U.S., where a quarter of markets are returning to normal levels. Areas such as Florida are witnessing declines in home prices, counteracting previous years' rapid growth. As supply increases and new constructions rise, the geographic disparity of home prices is becoming more pronounced across the country.
Impact of Tariffs and Economic Uncertainty
The ongoing economic uncertainty, fueled by tariffs and overall market conditions, is generating mixed expectations regarding mortgage rates. While there is optimism for mortgage rates to gradually decline through the summer, the unpredictability surrounding the broader economy complicates forecasts significantly. Housing and mortgage lenders are advised to cultivate strong relationships within the market, particularly focusing on new construction and home equity lending, which are gradually gaining traction. As the landscape evolves, understanding the interplay of these variables will be key for lenders seeking to navigate the challenges ahead.
On today’s episode, Editor in Chief Sarah Wheeler talks with Andy Walden, the head of Mortgage and Housing Market Research at ICE, about what he’s seeing in the early spring home-buying season.
The HousingWire Daily podcast brings the full picture of the most compelling stories in the housing market reported across HousingWire. Each morning, listen to editor in chief Sarah Wheeler talk to leading industry voices and get a deeper look behind the scenes of the top mortgage and real estate stories. Hosted and produced by the HousingWire Content Studio.