Housing Market Update and Economic News: August 1, 2025

Housing Trends

Starter Home Sales Reach Two-Year Peak
Sales of entry-level homes increased by nearly 4% in June compared to the same month last year, reaching their highest level since mid-2022. The median price for these homes was $260,000.

Powell Speaks on Housing Affordability
In this week’s press conference, Federal Reserve Chair Jerome Powell noted that while the Fed’s rate policy affects borrowing costs, it isn’t the primary force behind today’s elevated mortgage rates.

Delinquency and Foreclosure Activity Trending Up
New data from ICE shows that missed mortgage payments rose in June compared to May. Foreclosure rates also showed a year-over-year increase, signaling pockets of financial strain among homeowners.

Economic Update

Fed Leaves Interest Rates Unchanged
At its July meeting, the Federal Reserve opted to hold rates steady as it evaluates the broader economic impact of recent trade policy changes and persistent inflation signals.

PCE Inflation Surges While Consumer Spending Slows
The latest Personal Consumption Expenditures report showed one of the steepest inflation increases of 2025. However, consumer spending growth lagged—reflecting the pressure tariffs are placing on household budgets.

Job Market Shows Continued Strength
Despite inflation concerns, multiple labor reports confirmed that employment remains strong. Solid job growth supports the Fed’s decision to maintain current interest rates for now.

Quote of the Week

“In the business world, the rearview mirror is always clearer than the windshield.”
— Warren Buffett

Whether you’re planning to buy, sell, refinance, or build, staying informed is the key to smarter choices. Let the experts at Thompson Kane help you navigate shifting market conditions with confidence and clarity.