Housing Market Trends and Economic News Update: January 24, 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

• Insurance Costs Outpace Inflation: A recent Treasury Department study revealed that home insurance costs climbed 8.7% faster than inflation between 2018 and 2022. This sharp increase is largely attributed to climate-related natural disasters.
• Mortgage Applications Show Resilience: Despite mortgage rates exceeding 7% for many buyers, purchase mortgage applications rose by 1% last week and were up 7% compared to the same period last year.
• Federal Push for Affordable Housing: A new executive order mandates federal agencies to provide monthly updates on efforts to reduce housing costs and increase housing supply.

Economic Highlights

• Unemployment Claims Reach New Milestones: While new unemployment applications remain near pre-pandemic levels, ongoing claims have surged to 1.9 million, marking a three-year high.
• Credit Card Minimum Payments Soar: The number of consumers making only the minimum payment on their credit cards has hit a 12-year peak in 2024. Credit card delinquencies are also reaching record highs.
• Economic Growth Outlook Brightens: The Conference Board, a global economic research group, has revised its U.S. economic growth forecast upward to 2.3% for 2025, signaling stronger-than-expected expansion.

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 best way to predict the future is to create it.”
– Abraham Lincoln

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