Housing Market Trends and Economic News Update: January 31, 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

• New Homes: New home sales saw a year-over-year increase of 6.7% in December. Sales for the year surpassed 2023’s total by 2.5%, marking the highest point since 2021.
• Pending Home Sales Fall: After a four-month streak of growth, pending home sales dropped 5.5% in December, falling short of expectations. The dip is largely attributed to the impact of higher mortgage rates.
• Mortgage Applications Continue to Drop: Despite slight improvements in rates, mortgage applications remain sluggish. Weekly purchase applications fell by 0.4%, and they’re down 7% compared to the same week last year.

Economic Highlights

• Fed Policy Rate: The Federal Reserve decided to maintain its policy rate in January, signaling that it will hold steady until new data prompts a shift.
• Consumer Confidence Declines: Consumer confidence took an unexpected downturn in January, dropping to its lowest point in four months. Concerns about the labor market and future economic conditions contributed to the decline in optimism.
• Strong Economy Amidst Challenges: Despite the drop in consumer confidence, the economy remains resilient. A strong labor market continues to fuel consumer spending, with GDP growing 2.5% in the fourth quarter.

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.

“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”
– Albert Schweitzer

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