Housing Market Update and Economic News: August 22, 2025

Housing Trends

Builder Sentiment Weakens
Confidence among homebuilders fell to its lowest reading in five years as construction costs rise and tariff concerns weigh on project outlooks.

Resale Activity Tops Expectations
Existing home sales climbed 2% in July, beating forecasts. However, with prices up more than 40% since 2020, affordability challenges remain a top concern for buyers.

Mortgage Demand Remains Elevated
Purchase mortgage applications were steady week-over-week but still posted a 23% increase compared with the same time last year, marking the strongest four-week stretch in recent months.

Economic Update

Jobless Claims Edge Higher
Unemployment filings rose to 235,000 last week, up 11,000, the highest since June—hinting at some cooling in the labor market.

Fed Minutes Reveal Inflation Worries
The latest Federal Reserve meeting minutes highlighted debate over tariff-driven costs. Members expressed greater concern about inflationary pressures than potential job losses.

Tariffs Begin to Impact Consumers
Major retailers including Walmart and Home Depot noted that higher import costs are being passed along to shoppers, adding pressure to household budgets.

Quote of the Week

“In the business world, the rearview mirror is always clearer than the windshield.”
— Warren Buffett

Whether you’re purchasing, refinancing, or advising clients, clear insight into today’s housing and economic shifts helps you make better decisions. At Thompson Kane, we’re here to guide you through the details with clarity and care.