Housing Supply

Nationally, housing supply is gradually rebalancing, with new listings up nearly 4% year-over-year and 4 months of inventory now on the market. Sellers are currently outnumber buyers with more homeowners listing likely due to life changes and easing rate-lock effects. In Minnesota, housing activity picked up in April, with new listings up 7.2% statewide and pending sales rising as both inventory and prices edged higher.

Mortgage Rates

Mortgage rates remain below the 7% mark, with the U.S. weekly average for a 30-year conventional loan at 6.89% as of the end of May 2025.

Average for 30-year fixed-rate new purchase loans with at least a 20% down payment and an applicant credit score of 680 to 739.

Home Prices

In May, the U.S. median home sale price reached $394,375, up 1.9% from a year ago, with affordability still strained—monthly mortgage payments hovered near record highs at $2,860. While many buyers remain priced out, softening demand has led some sellers to offer price reductions and concessions. In Minnesota, prices continued to rise modestly in April, with the statewide median sales price up 2.9% to $360,000 and Twin Cities metro prices climbing 3.5% to $399,000.

Market Activity

Nationally, seller activity is outpacing buyer demand. While pending sales dipped 1.7% year-over-year in May, new listings are on the rise, indicating that more homeowners are re-entering the market despite higher rates. In Minnesota, both buyers and sellers showed renewed interest in April, with new listings up 7.2% statewide and signed purchase agreements rising 2.8%.