Housing Market Update and Economic News: May 30, 2025

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

Housing Market Trends

Home prices tick upward as more listings hit the market.
Home values continued to climb in March, though the rate of increase may ease as new property listings begin to balance the limited inventory that’s shaped the market. While more homeowners are choosing to sell, buyer activity hasn’t kept the same pace.

Pending home sales take a sharper-than-expected dip.
April saw a 6.3% drop in pending home sales, surpassing forecasts. The combination of elevated mortgage rates and ongoing economic jitters appears to be dampening buyer enthusiasm in many areas.

Purchase mortgage activity climbs on expanded inventory.
Mortgage applications for home purchases rose 2% last week and showed an 18% increase over the same week last year—largely due to more homes becoming available across multiple markets.

Economic Update

Consumer confidence rebounds on positive economic signals.
May brought a noticeable boost in consumer sentiment, with improving trade relations, job prospects, and market performance all contributing to a more optimistic national outlook.

First-quarter GDP contracts slightly amid weak spending.
The U.S. economy shrank by 0.2% in Q1, driven by reduced consumer spending and a record-setting trade imbalance. Nonetheless, gains in business investment and inventory levels provided some counterbalance.

Fed signals cautious approach to future rate moves.
The Federal Reserve’s latest meeting minutes show policymakers leaning toward a wait-and-see stance. Ongoing trade policy uncertainty and inflation pressures are key reasons for this cautious tone.

Quote of the Week

“The ability to simplify means to eliminate the unnecessary so that the necessary may speak.”

– Hans Hofmann, artist and educator

This sentiment applies as much to managing financial decisions as it does to making art—cutting through the noise allows buyers, lenders, and industry professionals to focus on what truly matters.