Housing Market Update and Economic News: February 20, 2025

At Thompson Kane, we stay ahead of shifting market trends so you don’t have to. Here’s a look at this week’s key housing and economic updates.

Housing Market Update

• Builder confidence falters in February: The National Association of Home Builders (NAHB) reports that builder sentiment dropped significantly this month. The decline is driven by rising mortgage rates, concerns over tariffs, and persistently high housing costs, which are adding pressure to the construction industry.
• Winter storms disrupt home construction: Harsh winter weather led to a slowdown in single-family homebuilding activity in January. While a moderate recovery is expected, ongoing challenges such as elevated borrowing costs and tariff-related price increases may limit growth.
• Mortgage applications decline amid affordability concerns: Mortgage demand softened last week, with total application volume falling 6.6%. Higher home prices and interest rates continue to keep many prospective buyers on the sidelines, waiting for better affordability conditions.

Economic Trends

• Fed minutes reveal cautious approach to interest rates: Recent meeting notes from the Federal Reserve indicate that policymakers are committed to holding interest rates steady. With inflation remaining stubborn and economic uncertainty still present, the Fed appears reluctant to make any immediate policy changes.
• Mortgage rates remain stable despite market concerns: So far this year, mortgage rates have held relatively steady. Initial fears about inflation and an expected increase in government debt issuance have not materialized to the extent some analysts predicted, keeping rates from spiking.
• Jobless claims rise slightly but labor market stays strong: The latest employment data shows a moderate uptick in new jobless claims. However, the overall labor market remains resilient, with steady job growth continuing to support economic stability.

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.

“Do not go where the path may lead, go instead where there is no path and leave a trail.”
– Ralph Waldo Emerson

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