Housing Market Update and Economic News: September 5, 2025

Housing Trends

New Home Spending Ticks Higher
July saw a modest increase in money spent on single-family construction, but overall building activity is slowing as higher borrowing costs and more available inventory weigh on the sector.

Contracts Falling Through More Often
More buyers are backing out of deals, with cancellations now at their highest level in years—highlighting growing hesitation in today’s market.

Mixed Results for Mortgage Applications
Purchase mortgage applications dipped 6% week over week, though they remain 17% above last year. Refinances managed a slight 1% weekly gain and are 20% higher than a year ago.

Economic Update

Fed Report Shows Tepid Activity
The Federal Reserve’s Beige Book notes that hiring and overall business conditions have flattened, while new tariffs are adding cost pressures for companies and consumers alike.

Job Openings Shrink Again
The number of available positions fell to 7.18 million in July—the second lowest reading since the pandemic—raising concerns about slowing employment momentum.

Factory Orders Decline
July factory orders dropped sharply due to fewer aircraft contracts. Still, orders outside of transportation came in stronger than expected, offering a modest silver lining.

Quote of the Week

“In the long run, we shape our houses, and afterwards our houses shape us.”
— Winston Churchill

Whether you’re planning to purchase, refinance, or advise clients, staying current with market shifts helps you make sound financial choices. At Thompson Kane, we’re here to guide you with insight tailored to your needs.