Key takeaways
- The median U.S. home is now 44 years old — and maintenance costs are rising fast. Financial advisors now recommend setting aside 2%–3% of a home’s value annually for upkeep, not the old 1% rule. (WSJ) 🧱
- National home-price growth slowed to just 0.9% year over year in January — inflation has outpaced price gains for 8 straight months. (WSJ / Case-Shiller)
- The Fed is in no hurry to cut rates. The March minutes showed officials are watching for sticky inflation and may pause longer than markets expect. (WSJ)
- Lancaster County continues to hold its own — check the local snapshot below. (Realtor.com)
Quick note
This is your weekly market update from Mortgage Craft. We put this together every week so you have real conversation points to use with buyers, sellers, and clients. If there’s a topic you’d like us to dig into — down payment assistance programs, rate strategy, investor loans — just hit reply and let us know!
Homes are getting more expensive to own
Here’s a number worth sitting with: the median U.S. home is now 44 years old — a record high, according to the Harvard Joint Center for Housing Studies. That’s well past the age when roofs, furnaces, plumbing, and electrical systems start asking for attention.
The cost of that attention is rising, too. According to the Federal Reserve Bank of Philadelphia, structural repair costs grew 14.1% in real terms between 2022 and 2024. Plumbing jumped 23.6%.
Financial advisors used to say: set aside 1% of your home’s value each year for maintenance. Many now say 2%–3% is more realistic — especially for older homes.
What does this mean for buyers in Lancaster County?
- Lancaster has a lot of beautiful, character-rich older housing stock. That’s part of the appeal. But it also means total cost of ownership is the right way to think about a purchase — not just the monthly payment.
- We can help you think through a cash reserve strategy so you’re not house-rich and cash-poor on day one.
- Pre-purchase inspections matter more than ever. Budget for what the inspector finds, not just the listing price.
What does this mean for sellers?
- Deferred maintenance is harder to hide in today’s market. Buyers are scrutinizing condition more carefully — and lenders are, too.
- A home in good repair will stand out. If you’re thinking about listing, talk to your realtor about what’s worth fixing before you go to market.
National market pulse: prices barely moving
The S&P Case-Shiller National Home Price Index showed U.S. home prices up just 0.9% year over year in January, down from 1.1% in December. For context, inflation has been running higher than that — meaning in real terms, home values are slightly lower than a year ago.
The Northeast is still holding up better than the Sun Belt — and Lancaster County sits right in that stronger regional pocket.
What does this mean for buyers?
- Don’t wait for a dramatic price drop — it’s not coming in markets like ours. The more impactful move is optimizing your rate, cash to close, and offer strategy.
What does this mean for sellers?
- National tailwinds are fading. Realistic pricing and a well-presented home matter more than they did two years ago.
Market News: Interest Rates
What happened?
Geopolitical tensions in the Middle East have driven oil prices higher, stoking inflation fears and forcing the Federal Reserve to signal that interest rates may stay elevated for longer.
The Fed’s March meeting minutes, released this week, showed that the “vast majority” of officials believe inflation progress could be slower than expected — driven by:
- Tariff effects on goods prices that may linger
- Oil prices bleeding into core inflation readings
- The risk that years of above-target inflation make consumers more tolerant of higher prices
The Fed held its benchmark rate steady at 3.5%–3.75% at the March meeting. Rate cuts may come eventually, but officials aren’t in a rush — and some are signaling they could even revisit raising rates if inflation doesn’t cooperate.
What does this mean for your clients?
- Rates are unlikely to drop dramatically in the near term. The best strategy: lock when it makes sense, don’t wait for perfect.
- If you have clients sitting on the sidelines waiting for rates to fall, let’s have a conversation about what a rate buydown or seller credit could do for their payment right now.