August 8, 2025

Overview:

Reports and articles referenced:

Housing data for download:

VIDEO TRANSCRIPT:

  • I’m Danielle Hale, Chief Economist at Realtor.com®. With little new macroeconomic data out this week, I’ll discuss how mortgage rates have initially reacted to last week’s jobs report.  I’ll discuss the latest tariffs and what we know so far.  I’ll review how consumer attitudes on housing are adjusting, share what we saw in this week’s housing market, and highlight a useful finding from the Realtor.com July housing trends report. I’ll review some buyer-friendly findings on the new construction market.   Finally, I’ll discuss the Hottest ZIP Codes of 2025. 
  • First, while there were bright spots, following last week’s jobs report – investors have generally downgraded their outlooks and raised odds of a Fed rate cut in September. As a result, mortgage rates dropped to their lowest level since April. But as you’ll know if you’re a regular watcher, mortgage rates have been remarkably steady this spring and summer. Even after the decline, mortgage rates remain above 6.5%. Nevertheless, this is a good break for current home shoppers and may spur others to restart their home searches.
  • But the fact that higher tariffs went into effect this week adds uncertainty that could offset some of the benefits of lower rates. The estimated tariff rate now in effect is 18.3% or roughly 7-8 times what was in place at the beginning of 2025. Tariffs have raised more revenue. In June we saw customs collections were roughly 3-4 times the prior state, but the question of who’s paying for them is up for debate.
  • In July consumers had mixed reactions to conditions. Concern about job loss improved in the month, but remains higher than in the prior year. With other improvements, this was enough to nudge the home purchase sentiment index up slightly from both last month and the prior year, but it is fair to say that sentiment remains generally low.
  • Selling attitudes in the survey were flat to weaker, something we see reflected in the Realtor.com Weekly Housing Trends report. New listings climbed less than 2% in the last year. This combined with a smaller gap in time on market helped to slow the rate of active listings growth, even as price trends remain relatively flat to slightly higher.
  • Looking at July housing data, variations in price cuts across metro areas illustrate a lesson for home sellers in this shifting environment. Data show that markets with growing time on market also tend to have a greater share of homes with price cuts. This underscores the importance of pricing for the market, especially if a quick sale is a priority.
  • In the New Construction Insights report, we also see buyer-friendly news. The price premium on a newly built home is at a historic low, and in 30% of the largest 100 markets, new home listing prices have declined. The biggest drops are primarily in Southern metros where inventory is high and demand has cooled.
  • Finally, this week Realtor.com released our Hottest ZIP Codes of 2025. In a generally cooler housing market, in which a smaller pool of buyers prioritize value and livability, some areas stand out for attracting outsized interest. In 2025 these ZIPs were again clustered in the Northeast and Midwest, including number 1 market Beverly, Massachusetts, ZIP 01915. And if you’re curious about Hot ZIPs in other regions or how markets stack up on a metro-wide level, we’ve got reports for that.
  • 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.

Subscribe to our mailing list to receive monthly updates and notifications on the latest data and research.