Housing Market Update and Economic News: July 04, 2025

Housing Trends

Slower Pace in Residential Construction
Spending on home building projects declined in May, as elevated borrowing costs and more available inventory slowed activity in the single-family housing market.

Boomers Staying Put
A recent survey revealed that 30% of Baby Boomers plan to stay in their current homes indefinitely, and another 30% don’t anticipate moving for at least ten years—posing continued challenges for housing inventory.

Purchase Applications Level Out
Mortgage applications for home purchases ticked up by just 0.1% last week. However, they remain 16% higher than at this time last year, suggesting stronger buyer engagement compared to mid-2024.

Economic Update

Job Market Signals Stability
The number of layoffs decreased in May, while job openings surged to their highest level since last November—reinforcing a relatively resilient labor market amid broader economic uncertainty.

Unemployment Rate Dips
June’s job report showed better-than-expected employment growth and a drop in the unemployment rate to 4.1%, reducing the likelihood of a near-term rate cut by the Federal Reserve.

Trade Gap Widens as Exports Fall
With exports declining in May, the U.S. trade deficit grew. However, expanding domestic production may help drive economic growth into positive territory for the second quarter.

Quote of the Week

“A house is made with walls and beams; a home is built with love and dreams.”

– Ralph Waldo Emerson

While housing and economic conditions remain complex, thoughtful planning and expert guidance can help buyers and professionals uncover valuable opportunities amid the challenges. Thompson Kane’s mission is to provide our borrowers with strategic guidance that fits their unique life goals—helping them move forward with confidence, no matter the market.