Housing Market Update and Economic News: August 15, 2025

Housing Trends

Refinancing Activity Expands
Refinance applications jumped to 46.5% of all mortgage submissions last week, up from 41.5% the week prior—signaling that borrowers are increasingly taking advantage of rate shifts.

Purchase Demand Holds Steady
New purchase applications ticked up 1% over the previous week and are now running 17% above this time last year. ICE’s latest Mortgage Monitor notes 26 consecutive weeks of annual growth in homebuying activity.

Detached Home Values Climb, Condos Slide
Single-family home prices rose 1.4% year-over-year in July, according to ICE. In contrast, condominium values dropped 1.8%, marking the weakest condo market performance since 2012.

Economic Update

Consumer Prices Rise Slightly—As Expected
Inflation in July edged higher but remained within forecasted ranges. Market analysts see this as supporting the likelihood of a rate cut from the Federal Reserve as soon as September.

Wholesale Price Spike Raises Concerns
Producer prices increased more than expected last month—raising the prospect that higher wholesale costs, possibly tied to tariffs, could soon impact consumers.

Markets Favor September Rate Cuts
Wall Street is increasingly confident that the Fed will begin lowering its benchmark interest rate in September. Mortgage rates already reflect this anticipation.

Quote of the Week

“To be successful, you have to have your heart in your business, and your business in your heart.”
— Thomas Watson Sr., Founder of IBM

Whether you’re buying, refinancing, or simply keeping an eye on trends, staying informed gives you the power to make smart, timely decisions. At Thompson Kane, we’re committed to helping you understand the market and find the path that fits your needs.