Housing Market Trends and Economic News Update: January 10, 2025

Thompson Kane’s team is dedicated to helping our community track the ever-evolving landscape of the housing market trends. Here are this week’s latest developments:

Housing Market Trends

• Mortgage Rates: Both the Mortgage Bankers Association (MBA) and Fannie Mae project that mortgage rates will stay above 6% into 2025, driven by a robust economy and the potential for increasing inflation.
• Housing Costs: The median monthly housing payment reached an all-time high of $2,775 in 2024, an 11% increase from the previous year, largely due to elevated home prices and mortgage rates.
• Decline in Mortgage Applications: Purchase applications dropped 7% this past week and are down 15% compared to the same period last year, as higher rates continue to suppress buyer demand.

Economic Highlights

• Fed Minutes Signal Slower Rate Cuts: Recent Federal Reserve meeting minutes suggest members are cautious about cutting rates too quickly, balancing inflation risks against concerns of an overheating economy.
• Job Openings Increase Despite Hiring Slowdown: In November, job openings rose unexpectedly. While slower hiring indicates a softening labor market, the data does not suggest a need for Federal Reserve intervention.
• Jobless Claims Point to Market Stability: Initial jobless claims reached an 11-month low last week, though continuing claims increased slightly. Overall, this reflects a relatively stable labor market.

Keeping you up-to-date with the constantly changing housing market

At Thompson Kane, we understand the importance of staying ahead in a rapidly changing market. Our goal is to equip you with the latest insights to help you make informed decisions. The right insight will help you confidently navigate your business and financial endeavors. For more frequent updates, follow the Thompson Kane Newsfeed and connect with us on Facebook for bi-weekly news and valuable content. Your success is our priority, and we’re here to keep you informed every step of the way.

“The future depends on what you do today.”
– Mahatma Gandhi

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