Housing Market Update and Economic News: May 23, 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

Single-family construction holds steady: April saw a modest 1.6% increase in single-family housing starts compared to March. However, new permits—a forward-looking indicator—fell by 5.1%, pointing to caution among builders.

Home resales dip again: Existing home sales declined by 0.5% in April and were 2.0% lower than this time last year, as persistent affordability concerns and economic uncertainty continue to weigh on buyer activity.

Gen Z’s growing role in the market: Younger buyers are making moves—Gen Z accounted for roughly 25% of all first-time mortgage originations in Q1 2025, according to the latest ICE Mortgage Monitor report.

Economic Highlights

Fed takes a cautious stance: Federal Reserve officials signaled this week that they remain on hold for now, waiting for clearer signs before adjusting interest rates in either direction.

Mixed employment signals: New unemployment filings came in slightly better than forecasted, but continuing claims rose by 36,000—suggesting the job market may be stabilizing more slowly than hoped.

Financial outlooks divided: In a recent survey from Achieve, 32% of households reported improved financial circumstances over the past year, while 33% saw declines. Expectations were more optimistic, with 57% anticipating improvement and only 10% expecting worse conditions.

Quote of the Week

“Do not wait to strike till the iron is hot, but make it hot by striking.” — William Butler Yeats

Whether you’re watching the market or ready to make a move, staying informed can help you act with confidence. Curious how these trends could shape your plans? Reach out to a Thompson Kane loan officer to get expert insight on your next steps.