Mid-Year Economic Update, Patrick S. Duffy
The mid-2025 housing and economic outlook is shaped not only by typical factors like mortgage rates and inflation but also by growing concerns over national debt, rising interest rates, and inconsistent tariff policies. Despite a sluggish resale market due to high prices and limited supply, new home sales have surged, as builders adapt by offering lower-priced homes and incentives to attract hesitant buyers. Builders also benefit from flexibility in design and pricing, as well as avoiding ongoing resale listing disputes, though high inventory levels and buyer uncertainty remain key challenges.
