Housing Market Update and Economic News: May 9, 2025

At Thompson Kane, we stay ahead of shifting market trends so you don’t have to. Here’s the latest update on housing and economic news that may affect your homebuying decisions.

Housing News

Spring buying activity gains traction: Despite continued economic concerns, the number of people applying for home loans jumped 11% last week and is up 13% compared to this time last year.

First-time buyers remain a driving force: According to new data from ICE Mortgage Monitor, 58% of agency-backed purchase loans in Q1 2025 went to first-time buyers, reinforcing their critical role in today’s market.

Seller sentiment turns cautious: Fannie Mae’s latest survey shows a growing number of homeowners no longer see this as an ideal time to sell. A rise in listings, flat sales numbers, and broader economic uncertainty appear to be tempering seller confidence.

Economic Highlights

Fed stays the course—for now: At its May meeting, the Federal Reserve left interest rates unchanged. However, it cautioned that inflationary pressures and signs of labor market strain could shape future decisions.

Jobless claims stabilize after brief uptick: Initial unemployment filings dipped last week, returning to levels that suggest overall workforce resilience after a late-April spike.

April economic indicators send mixed signals: U.S. manufacturing activity shrank for the second consecutive month, based on ISM data, while service industries posted modest growth.

Quote of the Month

“In the middle of difficulty lies opportunity.” — Albert Einstein

Whether you’re buying, selling, or just staying informed, understanding the latest shifts in the market can help you move with confidence. Have questions? Connect with a Thompson Kane loan officer to talk through your financial goals and next steps.