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August 22, 2025

Overview:

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  • The Realtor.com® economics team video update gives you the relevant economic and real estate information you need to know each week every Friday to navigate the housing market as a homebuyer, home seller, or industry professional.
  • For the week ending August 22, Realtor.com® Chief Economist Danielle Hale covers her reaction to the Fed’s annual Jackson Hole Symposium. She discusses the latest data on homebuilding including a report on the markets where buyers are looking for and finding it. Danielle reviews the latest research on how mortgage rates and income are shaping purchasing power for home shoppers and how that affects home sales along with the latest mortgage rate and housing market trends. Finally, she highlights the strikingly coastal lean of America’s most expensive ZIP codes
  • You’ll find all the details including full reports and our housing data for download at realtor.com/research. You can also follow us on X (formerly twitter) for real time updates. And instagram @realtordotcomecon for graphics.

Reports and articles referenced:

  • August 2025 Buying Power Report
    https://www.realtor.com/research/buying-power-report-aug-2025/ 
  • Top New Construction Metros for 2025
    https://www.realtor.com/research/top-new-construction-metros-2025/ 
  • America’s Most Expensive ZIP Codes
    https://www.realtor.com/research/americas-most-expensive-zips/ 
  • Weekly Housing Market Trends – Week of August 16
    https://www.realtor.com/research/weekly-housing-trends-view-data-week-august-16-2025/ 
  • Commentary on Housing Construction – July 2025
    https://www.realtor.com/research/new-home-construction-july-2025/ 
  • Commentary on Mortgage Rates – August 21, 2025
    https://www.realtor.com/research/freddie-mac-mortgage-rates-august-21-2025/ 
  • Commentary on Existing Home Sales – July 2025
    https://www.realtor.com/research/existing-home-sales-july-2025/
  • Commentary on Chair Powell’s Jackson Hole Address August 2025 https://www.realtor.com/research/federal-reserve-powell-jackson-hole-2025/

Housing data for download:

  • https://www.realtor.com/research/data

VIDEO TRANSCRIPT:

  • I’m Danielle Hale, Chief Economist at Realtor.com®. As late summer signals last beach vacations and the Fed’s annual Jackson Hole Symposium, I’ll discuss the latest data on homebuilding including a report on the markets where buyers are looking for and finding it. I’ll also review the latest research on how mortgage rates and income are shaping purchasing power for home shoppers and how that affects home sales along with the latest mortgage rate and housing market trends. Finally, I’ll highlight the strikingly coastal lean of America’s most expensive ZIP codes. 
  • In Chair Powell’s Jackson Hole address he pieced together a picture of the economy as a whole–healthy, but slowing–based on a wide number of variables illuminating the Fed’s dual mandate and pressures on employment and the inflation outlook. Chair Powell acknowledged that conditions “may warrant adjusting [the] policy stance,” which he described as restrictive. My own outlook matches the typical market perspective: that the Fed is likely to cut in September, and Chair Powell’s address has further consolidated expectations around this view.
  • In construction, data showed an uptick in July housing starts, but both permits and completions were down on a yearly basis. 
  • Builder confidence remains low and incentive use is widespread. However, builders reported a modest uptick in buyer traffic, and a Realtor.com study showed that some markets have even greater buyer engagement. This metric along with other stats on homebuilding fed into our Top New Construction Metros ranking. These top metros are overwhelmingly found in the South, but every region is represented by at least one market on the list. The option of buying a new home may be more realistic than many consumers expect.
  • One challenge facing builders is buyer purchasing power. A Realtor.com study found that despite significant income growth, higher mortgage rates have erased nearly $30,000 in home purchasing power for the typical income household in the last 6 years. There are a few markets that bucked this trend, where incomes have grown enough to offset the impact of higher mortgage rates, but they are the exception, not the norm.
  • Even though mortgage rates are still a headwind, existing home sales rose in July getting just past a 4 million sales pace. Home price growth slowed and data show notable variation across the country, making it more important than ever to tap into local market trends.
  • This week, mortgage rates were unchanged as investors digested conflicting signals on recent labor market and inflation data. Rates are likely to move lower as we near mid-September and the next expected Fed cut.  Meanwhile, housing data remained fairly steady. We see more sellers, but momentum is waning and active listings continue to go up as prices remain flat.
  • Finally, have you ever wondered where the nation’s priciest homes are? America’s most expensive ZIP codes are found in coastal markets in California and New York, and also where the number one priciest ZIP is: Fisher Island in Miami, FL.
  • You can find all the details, including full reports and our housing data for download, at realtor.com/research.  You can also follow us on X (formerly twitter) for real time updates. And instagram for graphics. 

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