Housing Market Update and Economic News: August 29, 2025

Housing Trends

New Home Sales Lose Momentum July sales dropped following June’s strong upward revision, as affordability pressures continue to weigh on buyers.

Price Growth Slows FHFA reported a 2.9% annual increase in home prices, though values remained flat compared with the first quarter, showing signs of nationwide cooling.

Pending Contracts Decline Buyer hesitation carried into July, with pending sales slipping as high costs and tight budgets limit activity.

Economic Update

Jobless Claims Edge Lower Both initial and continuing unemployment claims fell last week, underscoring a labor market with few layoffs but slower hiring.

GDP Surpasses Forecasts Second quarter GDP was revised upward to 3.3%, fueled by strong consumer spending and a drop in imports.

Confidence Levels Dip Consumer sentiment softened in August as concerns over employment, tariffs, and inflation dampened optimism.

Quote of the Week

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, it is about the safest investment in the world.”
— Franklin D. Roosevelt

Whether you’re buying, building, or advising, staying informed is key to making confident decisions. At Thompson Kane, we’re here to help you navigate today’s shifting housing and economic environment with insight and care tailored to your unique goals.