🏡Real Estate Nuggets - 5/9/2025
Real estate news for you as of May 9th, 2025.
~Average mortgage rates as of May 9th, 2025~
30 yr. Fixed - 6.91%
15 Yr. Fixed - 6.22%
30 Yr. FHA - 6.30%
30 Yr. Jumbo - 7.02%
Disclaimer: Average mortgage rates as of May 9th, 2025. © MND's Daily Rate Index
1. 🚨USDA now allows manufactured homes to be utilized with their program
The U.S. Department of Agriculture has finalized a rule enabling manufactured homes to qualify for its Single Family Housing Direct and Guaranteed Loan Programs, a move aimed at easing access to affordable rural housing.
Effective May 5, the rule lowers regulatory barriers and extends support to energy-efficient homes in nonprofit-run land-lease communities. The update follows favorable public feedback to a 2023 proposal and is expected to boost supply amid national housing shortages.
USDA emphasized that eligible homes must meet federal standards set by the 2000 Manufactured Housing Improvement Act, and be built within 10 years of the closing date.
2. Weekly mortgage demand suddenly surges
Mortgage interest rates dropped for the second straight week, although not by a lot. That was thanks to more negative news on the economy. But despite all that, weekly mortgage demand surged higher by 11%, according to the MBA.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.84% from 6.89%.
Applications for a mortgage to purchase a home rose 11% for the week and were 13% higher than the same week one year ago. Driving the increase was a surge in demand for conventional loans.
Applications to refinance a home loan also rose 11% for the week and were 51% higher than the same week one year ago. That demand was driven by Veterans Affairs, or VA, loans , which rose 26% for the week.
“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April,” said Michael Fratantoni, chief economist at the MBA.
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- 5.84% fixed rate
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3.🔥Quick Hits
⏩Fed holds rates steady as it notes rising uncertainty
🤖Crypto mortgages gaining traction (realtor.com)
👀Trump’s budget request seeks $33B in HUD cuts. (HousingWire)
4. Employers added 177,000 jobs in April despite tariff uncertainty
Job growth was stronger than expected in April despite worries over the impact of President Donald Trump’s blanket tariffs against U.S. trading partners.
Nonfarm payrolls increased a seasonally adjusted 177,000 for the month, slightly below the downwardly revised 185,000 in March but above the Dow Jones estimate for 133,000, the Bureau of Labor Statistics reported Friday.
Monthly job creation in the U.S.
5. New homes prices continue to drop as existing rises
The median price of a new single-family home fell to $416,900 in Q1 2025, just $14,600 above the $402,300 median for existing homes, according to federal data—well below the five-year average price gap of $26,700.
New home prices declined 2.3% year-over-year, continuing an eight-quarter slide, while existing home prices rose 3.4%, their seventh straight quarterly increase. Builders are responding to affordability pressures with smaller homes and incentives, while tight inventory and high mortgage rates keep existing home prices elevated.
Regionally, new homes were most expensive in the Northeast ($784,900), but existing homes in the West led all markets at $626,000.
If you liked this newsletter, send it to a friend here. If I can help answer any of your mortgage questions let me know! I’m always available to help and always appreciate referrals.
Adam Walmsley // Oklahoma Mortgage Loan Officer // NMLS 2286628
Mobile: (405) 703-9929
Email: adam.walmsley@southwestfunding.com
Moore, Oklahoma
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Southwest Funding, LP // NMLS 32139
