August 2025 Snapshot: What It Means for Homebuyers, Mortgages, and the Economy
- Zachary Schwartz
- Aug 1
- 2 min read
Mortgages, Homebuyers, and the Economy
With summer in full swing, the latest economic data offers a mixed but encouraging picture for current and future homeowners. Here’s a quick breakdown of what’s happening in the economy and what it could mean for mortgages and homebuyers.
It's the Economy, Silly: Inflation Slows - Fed Holds Steady
June’s inflation numbers brought more relief: the Consumer Price Index (CPI) rose just 0.2% month-over-month, and year-over-year inflation now sits at 2.6%. That’s the lowest in over three years and brings the Federal Reserve closer to its long-term 2% target.
In response, the Fed held interest rates steady in its July meeting. While no immediate rate cuts were announced, Chair Jerome Powell hinted that they could begin easing later this year—especially if inflation continues to cool and job growth moderates.
Mortgages Still Volatile, but Trending Lower
The average 30-year fixed mortgage rate remains in the 6.6% to 6.8% range, down from peaks above 7% earlier in 2024. While rates remain volatile due to global uncertainties and market speculation, recent economic reports are fueling cautious optimism that borrowing costs could continue to drift downward by fall.
💡 Town Team Tip: If you’re thinking about buying, now’s a great time to get pre-approved. Rates are still relatively high, but locking in now gives you flexibility—and puts you ahead of the curve if the market moves.
Housing Inventory Improves Slightly, Good for Homebuyers
Housing inventory saw a modest 3% increase in listings nationwide this July, with more sellers coming off the sidelines thanks to stable home prices and easing inflation. That’s good news for homebuyers who have struggled with low inventory and bidding wars over the past two years.
Home prices, meanwhile, remain steady year-over-year in most markets, with slight gains in Midwest and Southern metros.
Consumer Confidence Rebounds
The University of Michigan’s consumer sentiment index rose to its highest level since early 2022, with Americans feeling more confident about the economy, inflation, and their own financial situations. This shift in sentiment could fuel more activity in the housing market over the next few months.
Bottom Line: Be Ready
The economy is trending in the right direction—but it’s still a sensitive balancing act. For buyers, that means preparation is key.
At Town Team Mortgage, we’re here to guide you through every step. Whether you're comparing loan options, getting pre-approved, or just wondering if now is the right time, we're just a click or call away.
📞 312-896-2114
