Housing Market Update and Economic News: June 6, 2025

At Thompson Kane, we stay ahead of shifting housing market trends so you don’t have to. Here’s a look at this week’s key housing market and economic updates.

Housing Market Trends

Single-family construction slows as unsold inventory builds.
Residential construction spending dropped in April, with the slowdown most visible in the single-family sector. Builders are responding to both high mortgage rates and a growing number of unsold homes on the market.

Mortgage application volume dips despite lower rates.
Even with a modest pullback in rates last week, overall mortgage applications declined by 3.9%. Demand continues to soften as affordability challenges weigh on buyer confidence.

Inventory climbs while homes linger longer on the market.
Compared to a year ago, the number of homes for sale is up 33%. Listings are taking more time to move, pointing to a market where supply is starting to outpace current buyer activity.

Economic Update

Job openings increase, but layoffs accelerate.
Employers posted more open positions in April, but at the same time, layoffs rose at the fastest pace seen in nine months. These crosscurrents suggest growing uncertainty in the labor market.

Private sector hiring sees weakest monthly gain in over a year.
ADP reported just 37,000 new private-sector jobs in May—the slowest monthly increase since March 2023 and well below expectations, signaling a possible deceleration in hiring.

Jobless claims rise to new multi-month high.
Unemployment claims climbed to 247,000 last week, the highest level since October. It’s another indicator that job market strength may be fading, with more companies tightening their staffing plans.

Quote of the Week

“In the midst of chaos, there is also opportunity.”
– Sun Tzu

In today’s market, volatility and uncertainty often bring new possibilities. For homebuyers, lenders, and real estate professionals, staying informed and grounded can turn a shifting landscape into a strategic advantage.