The mortgage market has been tanking for the last two years, suggesting that the U.S. housing market will continue to struggle in the final months of 2025. Mortgage applications to buy a house, as reported by the Mortgage Bankers Association, is still 35% below its pre-pandemic levels, and down 55% from the pandemic peak. This aggressive decline in mortgage demand has abated in the last year, with a 16% increase YoY, however aggregate demand levels are still very low. Access data on the housing market on REVENTURE APP: https://www.reventure.app/
This low mortgage demand is the main reason why home prices are now dropping in half of the U.S., with 27 states registering monthly home value declines according to data from Zillow. The worst-hit states are Florida, Texas, Arizona, and Colorado, where values are down as much as 5% YoY. But in some pockets, they’re dropping even further.
Such low demand is now causing sellers to slash prices in many markets. But overall – home values are still at a near record level in much of the U.S. But Zillow is increasing their forecast slightly because inventory growth on the market has slowed from its rates earlier in the year.