Housing Market Update and Economic News: June 20, 2025

Housing Trends

Builder discounts surge as sentiment slips.
According to the June NAHB survey, more home builders are offering price incentives—an indication that confidence in the market is slipping amid slower buyer activity.

New construction slows sharply.
Housing starts fell nearly 10% in May, pushing new home construction to its lowest level in five years as demand remains stifled.

Purchase demand dips weekly, still up year-over-year.
Mortgage applications for home purchases declined 3% last week, but remain 14% higher than the same period last year thanks to broader market inventory gains.

Economic Update

Consumer spending slows more than expected.
Retail activity dipped in May, with gas station sales falling and consumers pulling back on discretionary spending amid ongoing economic uncertainty.

Fed holds steady, eyes inflation.
The Federal Reserve left interest rates unchanged at this week’s meeting but reiterated concerns about persistent inflation and slowing economic momentum.

Rate cut projections shift to 2025.
Most Fed members now expect two rate reductions this year, while investors are speculating that the first cut could come as early as September if data supports it.

Quote of the Week

“The art of progress is to preserve order amid change and to preserve change amid order.”

– Alfred North Whitehead, philosopher and mathematician

While housing and economic conditions remain complex, thoughtful planning and expert guidance can help buyers and professionals uncover valuable opportunities amid the challenges. Thompson Kane’s mission is to provide our borrowers with strategic guidance that fits their unique life goals—helping them move forward with confidence, no matter the market.