Housing Market Update: October 17, 2025 — Key Housing and Economic News

Housing Trends

Credit Scores Hit Six-Year High
ICE data shows the average credit score for borrowers locking mortgage rates in September climbed to 736—the highest level recorded in six years.

Purchase Demand Slips but Stays Strong Year-Over-Year
Purchase applications declined for the third consecutive week, yet activity remains about 20% higher than this time last year as increased housing inventory continues to draw buyers.

Gen Z Faces Steep Homeownership Challenges
In a new Realtor.com survey, 82% of Gen Z respondents said buying a home feels harder for their generation than any before. Nearly one in five named affordability as their number-one life concern.

Economic Update

U.S.–China Trade Tensions Resurface
After several months of relative calm, new trade frictions between the U.S. and China have reemerged, renewing investor worries over potential tariffs and supply chain disruptions.

Shutdown Drags into Third Week
The ongoing government closure has entered its third week, leaving economists and investors without key data on jobs and overall growth.

Fed Signals End of Tightening Cycle
Federal Reserve Chair Jerome Powell indicated that the central bank’s program of quantitative tightening may soon conclude—a move that could reduce the supply of mortgage bonds and help push rates lower.

Quote of the Week

“The secret of change is to focus all your energy not on fighting the old, but on building the new.”
— Socrates

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.