MARKET IN A MINUTE NATIONAL VIEW

Housing Market

• Sales of new single-family homes dropped 13.7% in May and 6.3% from a year ago, well below both the six-month and the one-year average.

• However, pending home sales picked up in May after a sharp decline a month earlier, with contract signings rising 1.8% as inventory levels ease.

• Home mortgage applications dropped 0.4% last week compared with the previous week, but were 11% higher than the same week a year ago.

Economy

• Readings show that in June, consumers grew less pessimistic about the economy and inflation as global trade tensions showed signs of easing.

• Although new unemployment claims decreased last week, continuing claims increased to 1.97 million, the highest level since November 2021.

• Some Fed members have come out saying they would like to see the Fed cut policy rates as soon as next month’s meeting, if inflation stays low.

TENNESSEE PENDING HOME SALES UP IN MAY 2025

by Phil Hall | June 26, 2025

Pending home sales during May were up by 1.8% from April and up 1.1% from one year earlier, according to the National Association of Realtors (NAR).

All four regions experienced month-over-month increases while contract signings were up year-over-year only in the Midwest and South – the Northeast and West reported declines during that period.

“Consistent job gains and rising wages are modestly helping the housing market,” said NAR Chief Economist Lawrence Yun. “Hourly wages are increasing faster than home prices. However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains.”

Yun added, “The Northeast’s housing shortage is boosting home prices, with more than a quarter of homes selling above list price. Conversely, more inventory in the South gives home buyers greater negotiation power. Price declines in the South should be considered temporary given the region’s strong job creation.”