Housing Market Trends and Economic News Update: February 14, 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

• Home Purchase Applications Slip: The number of mortgage applications for home purchases declined by 2% this past week. However, application activity remains 2% higher than during the same period last year.
• For-sale home inventory grows 22%: According to ICE, the number of homes listed for sale has increased by 22% in 2024. If this trend continues, housing inventory levels could return to pre-pandemic norms by mid-2026.
• Renter-friendly conditions may shift: A rising supply of rental properties has made the market more favorable for tenants. However, with a slowdown in multifamily construction, this renter-friendly landscape could tighten after this year.

Economic Highlights

• Consumer prices see biggest increase in 18 months: January brought the highest jump in consumer prices in a year and a half, reinforcing the Federal Reserve’s stance that interest rate cuts are unlikely in the near term.
• Fed Chair Powell signals patience on rate cuts: In testimony before Congress, Federal Reserve Chair Jerome Powell stated that the economy is performing well, giving the Fed room to be deliberate in deciding when to adjust interest rates.
• Job market remains steady: New unemployment benefit applications dropped last week, pointing to continued stability in the labor market as February got underway.

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.

“Real estate is the purest form of entrepreneurship.”
– Brian Buffini

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