There are signs that the housing market is swinging to favor buyers. However, renewed worries about the economy are holding some buyers back.

On the upside for homebuyers, home price growth has slowed and mortgage rates have retreated from recent peaks.

The median sale price for homes was $375,475 in the four weeks ending February 16, up 3.7% from a year prior, according to Redfin, a real estate brokerage firm. That is the smallest increase in nearly five months.

Meanwhile, the average 30-year fixed rate mortgage inched down to 6.87% the week ending Feb. 13, per Freddie Mac data. That’s the lowest so far in the year, and down from the latest peak of 7.04% in January.

More from Personal Finance:
Converting your home to a rental could trigger a ‘tax bomb’ when you sell
What the privatization of Fannie Mae, Freddie Mac may mean for homebuyers, investors
U.S. appeals court blocks Biden SAVE plan for student loans

However, “buyers are still faced with this massive affordability challenge,” said Orphe Divounguy, a senior economist at Zillow.

Mortgage applications for the week ending February 14 fell 6.6% from a week earlier, according to data from the Mortgage Banker’s Association. Experts forecast January home sales data — set to come out Friday — to show a decline.

On top of relatively high costs, some buyers could be having second thoughts as uncertainty about the broader economy creeps in, according to Chen Zhao, an economist at Redfin.

“A lot of it is coming from the White House,” she said of the reasons that have buyers worried.

According to Redfin data, there were 564,642 new home listings in January, up 1.9% from a month prior and 4.7% higher from a year earlier. New home listings hit the highest level since July 2022.

Some home sellers are cutting their asking prices, too. The typical home is selling for 2% less than its asking price, the biggest discount in two years, per Redfin data.

As of mid-February, thousands of workers across multiple federal agencies and departments have been laid off as part of President Trump’s aim to reduce the government workforce.

This can make people who either work directly with the government or are connected through contract work or federal funding “nervous that there could be big changes on the horizon,” Zhao said.

“They are worried about job security,” said Zhao, which takes a home purchase off the table.

“The first thing you might do is hold off on a really big purchase because you’re worried about financial security,” she added.

The anxiety doesn’t stop there — the possibility of trade wars and drastic changes in government spending may leave Americans wondering “what’s next?” Zhao explained.

Trump signed a presidential memorandum laying out his plan to impose “reciprocal tariffs” on foreign nations. The plan allows the U.S. to treat other countries’ non-tariff policies as unfair trade practices that warrant tariffs in response.

For consumers, the prospect of higher prices on everyday items and the potential for inflation to accelerate may make them hesitate to invest in a new home.

Closing costs can run between about 2% and 6% of the loan amount, according to NerdWallet. If you take out a $300,000 mortgage, you could pay from $6,000 to $18,000 in closing costs on top of the down payment.

The average buyer’s agent commission was 2.37% for homes sold in the fourth quarter of 2024, down from 2.45% a year prior, per a data analysis by Redfin. 

If not, check out the new builds market — some builders are offering incentives like “in-house lending” and often provide favorable loan terms like lower rates, experts say.

Americans are racking up more and more credit card debt.

Collectively, consumers owe a record $1.21 trillion on their credit cards, the Federal Reserve Bank of New York recently reported.

The average balance per consumer now stands at $6,580, up 3.5% year over year, according to a separate quarterly credit industry insights report from TransUnion.

Despite the uptick, the rate of change has slowed considerably, said Charlie Wise, TransUnion’s senior vice president of global research and consulting. “Consumers are still continuing to use their credit cards, but the amount they are leaning on them seems to be declining.”

In the wake of the pandemic, higher prices and high interest rates put many households under pressure and prices are still rising, albeit at a slower pace than they had been.

The consumer price index — a key inflation barometer — has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3% in January. but is still above the Federal Reserve’s 2% goal.

The central bank cut its benchmark rate by a full percentage point in the second half of 2024, but policymakers have been advocating a more cautious pace ahead as they evaluate the overall strength of the labor market and President Donald Trump‘s policy ramifications.

More from Personal Finance:
Credit card debt hit a record $1.21 trillion
Here’s the inflation breakdown for January 2025
Wholesale egg prices have ‘blown way past’ record highs

According to meeting minutes released Wednesday, Federal Reserve officials agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact tariffs may have.

In the meantime, households have largely adjusted to a new normal of high prices and high rates, Wise said: “We’re seeing a bit less of a reliance on credit cards to make ends meet.” After balances soared in 2022 and 2023, the growth in credit card debt has slowed considerably, he said.

Credit card delinquency rates, or those 90 days or more past due, fell year over year for the first time since 2020, TransUnion also found. “This is a good sign,” Wise said.

Credit cards are still one of the most expensive ways to borrow money after the Federal Reserve’s string of interest rate hikes lifted the average credit card rate to more than 20% — near an all-time high.

Even as the Fed lowered its benchmark at the end of last year, the average credit card rate barely budged.

“The good news is that there are plenty of options to help you pay down card debt,” Schulz said.

Rather than wait for a modest adjustment in the months ahead from further Fed rate cuts, borrowers could call their card issuer now and ask for a lower rate, switch to a zero-interest balance transfer credit card or consolidate and pay off high-interest credit cards with a personal loan, Schulz advised.

“If you’re really struggling, an accredited nonprofit credit counselor can make a huge difference,” he said. “Doing nothing, however, is not an option. It’ll only make things worse.” 

Subscribe to CNBC on YouTube.

Every year, millions of dollars in credit card rewards go unclaimed — money that could be covering travel, everyday expenses, or even cash back in your pocket. If you’re not redeeming those rewards, you’re leaving money on the table.

As someone who leverages credit card rewards, I was somewhat surprised by the recent Bankrate survey revealing that 25% of Americans didn’t redeem their rewards last year.

That represents big money. For example, in 2022, consumers using general-purpose credit cards from major issuers earned more than $40 billion in rewards, according to a 2024 Consumer Financial Protection Bureau report. “Issuers forfeit, expire, revoke, or otherwise take away hundreds of millions of dollars in earned rewards value each year,” the agency said.

With so much content from social media influencers to financial experts highlighting these benefits, the real issue isn’t just awareness; it’s execution. 

Knowing about the reward programs is one thing, but implementing is what actually matters.  Like any other aspect of financial planning, without a strategy, these perks may go unclaimed.

Here are some key points for consumers to know.

After a call to the financial institution, they discovered the credit card they purchased the item with had purchase protection, which can reimburse you for recently purchased items that are stolen or damaged.

Thanks to that, the cost of the iPad would be reimbursed to them after they submitted some paperwork. Within weeks, they got their money back, allowing them to replace the item. It was a great reminder that so many people are unaware of various perks.

Knowing what your credit card offers can turn an unexpected loss into a valuable lesson and soften the financial impact.