Congress Aims To Lower Housing Costs With New Bill: What Homebuyers Need To Know Now

A landmark housing bill successfully cleared Congress this week; however, an unexpected, last-minute signing delay by President Donald Trump has sparked questions regarding the future of the proposal, which aims to boost supply and lower housing costs.

The 21st Century Road to Housing Act passed with overwhelming bipartisan support, securing an 85-5 vote in the Senate and a 358-32 vote in the House.

Despite the abrupt postponement of the planned signing, this is a likely temporary delay rather than a total derailment. The strong congressional majorities suggest the bill is still highly likely to become law.

Because many of the law’s benefits will take time to impact builders' plans and projects, it is anticipated that the market will navigate the pause in stride.

New-home sales and construction slow down

Data from May reveals a softer pace for new-home sales, which dropped to an annual rate of 580,000. This represents a 7.3% decline from April and a 6.8% decrease from the same period last year. Consequently, the months' supply of inventory rose to 10.3.

Prices remained relatively steady, dipping just 0.6%, according to Realtor.com® senior economist Joel Berner.

However, an increasing share of for-sale new homes categorized as "not yet started" indicates that builders are exercising caution regarding speculative building. This trend aligns with weaker new-home construction data recorded for the month.

Mortgage rates edge higher under Fed scrutiny

The Freddie Mac 30-year fixed mortgage rate ticked up 2 basis points to 6.49%. While cautious optimism surrounding a resolution in the Middle East provided some market support, it was ultimately offset by lingering inflation risks.

In his first meeting, the steady and blunt Federal Reserve Chair Kevin Warsh reinforced the central bank's stance, stating, "The committee will deliver price stability."

Weekly trends signal market stabilization

The Realtor.com weekly housing trends report suggests the market is continuing to find its footing with steadying conditions that could foster more home sales.

The median list price remained soft, down 3.1% year over year, but the supply picture remains decent. New listings rose 3.2% compared to a year ago, while active inventory topped 1.1 million homes, remaining 1.7% above last year's levels.

Finally, homes sold at the same pace as a year ago for a fourth consecutive week.

Small investors dominate as mega-investors retreat

Real estate investment is facing a shifting landscape, according to senior economist Hannah Jones. In 2025, investors purchased approximately 534,000 homes, accounting for 11.3% of total purchases—a slight increase in both volume and market share compared to the previous year.

However, a major shift occurred in who is buying. Small investors accounted for 62.7% of all investor purchases.

Meanwhile, mega-investors fell to just 7.5% of purchases, marking their smallest market share since at least 2011.

This retreat compounded a pullback from COVID-19 pandemic-era highs, potentially influenced by ongoing proposals to further limit mega-investor involvement.

Defining luxury: From Huntsville to Aspen

Realtor.com senior economist Anthony Smith's Seven Levels of Luxury report emphasizes that the luxury real estate market cannot be defined by a single national price tag.

While it takes roughly $1.28 million nationally to break into the top 10% of listings, the entry point varies drastically by region. The luxury entry point starts near $759,000 in Huntsville, AL, and rises to nearly $25 million in Aspen, CO.

Smith's spotlight report on Las Vegas reveals that while luxury starts just above $1.2 million there, a home priced between $1 million and $2 million still offers significantly more space than the national average, keeping demand from California buyers active in the market.