The spring housing season hit a speed bump this week as rising mortgage rates and global economic uncertainty prompted both buyers and sellers to retreat.

The latest Weekly Housing Trends report from the Realtor.com economic research team reveals a market in a state of trepidation as mortgage rates crept higher and home prices softened.

New listings, which are a key measure of sellers’ willingness to enter the market, fell by 2.5% year over year for the week ending May 2, a deeper negative turn after dropping 1.4% annually the prior week.

“While some sellers are gradually reengaging with the market, others may remain on the sidelines amid mortgage rate volatility,” says Realtor.com economist Jiayi Xu. “This week’s housing data points to a cautiously active market.”

On the buyer side, purchase applications dropped 4% from last week on a seasonally adjusted basis, although purchase activity remained 5% higher than a year ago, according to the Mortgage Bankers Association.

“The ongoing conflict in the Middle East continues to push rates higher,” says MBA Deputy Chief Economist Joel Kan. “As expected, elevated rates and shrinking refinance incentives continued to weigh on activity.”

Fresh data from Freddie Mac shows the 30-year fixed-rate mortgage averaged 6.37% this week, up from 6.30% the previous week. While current rates remain notably lower than the 6.76% seen a year ago, the recent upward tick appears to be cooling the momentum that had been building since March.

“Recent data points to slightly better conditions for buyers with a boost in new-home sales and higher inventory than in recent years,” says Sam Khater, Freddie Mac’s chief economist.

Indeed, Realtor.com data shows that active inventory grew by 2.7% this week compared to a year ago, providing shoppers with more options than they had in 2025. However, that growth has slowed from the 4%+ gains seen last month.

Prices continue to fall in welcome move for buyers

Despite the signs of hesitation, softer prices remain a silver lining for spring buyers who are still in the hunt.

Nationally, median listing prices dropped 2.9% this week compared with a year ago, extending the decline of 2.3% seen a week earlier.

It marks the 27th consecutive week in which asking prices have either fallen or remained flat compared to the previous year.

This prolonged softening of prices, combined with homes spending just one day longer on the market than last spring, a fairly balanced market that is moving in favor of buyers, according to the Realtor.com Market Clock.

Still, this week’s numbers show that even in the heart of the spring season, the housing market remains sensitive to every basis point move in mortgage rates. For now, the wait-and-see approach appears to be the dominant strategy for Americans on both sides of the transaction.