Housing Market Update and Economic News: May 16, 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

Gen Z and Millennials may lead a selling wave: According to ICE’s 2025 Borrower Insight Survey, 42% of younger Gen Z homeowners and 27% of Millennials are considering selling their homes within the next 12 months.

Top reasons sellers are eyeing a change: Most would-be sellers say they’re motivated by a desire to move to a new location (42%), adjust their home size (38%), or tap into equity through a sale (30%).

Home loan demand climbs again: For the second consecutive week, purchase mortgage applications rose—up 2% from the previous week and showing an 18% increase over the same period last year.

Economic Highlights

Inflation slows to a four-year low: Consumer prices increased just 2.3% year-over-year in April, thanks in part to lower costs for groceries, vehicles, and airfare, despite broader concerns over tariffs.

Producer prices take a notable dip: Businesses pulled back on price increases last month, with producer prices dropping more sharply than they have in five years—a sign that companies are absorbing more costs instead of passing them along.

Retail momentum softens: April saw only a 0.1% rise in retail spending following a strong March, as economic uncertainty and tariff concerns led many shoppers to scale back.

Quote of the Week

“The art of life lies in a constant readjustment to our surroundings.” — Kakuzō Okakura

Whether you’re preparing to buy, sell, or simply want to stay informed, staying in tune with market shifts gives you an edge. Have questions about how today’s conditions affect your plans? Talk to a Thompson Kane loan officer to explore your next steps.