A look into what is shaping the real estate market this week based on news headlines
Jason Waugh
Every week, I look at the shifts shaping the market — what’s changing, where momentum is building, and what sales professionals need to keep in focus. There’s no shortage of headlines, but what matters is how we translate those signals into confident action.
Here’s what stood out last week.
August 11, 2025
MORTGAGE APPLICATIONS TICK UP IN JULY AS RATES EASE SLIGHTLY. Mortgage application activity picked up in July as interest rates eased modestly. The Mortgage Bankers Association’s (MBA)Market Composite Index, which tracks mortgage application volume, rose 2.4% from June on a seasonally adjusted basis. Compared to July 2024, total applications were up 24.5%, with purchase applications rising 19.6% and refinance applications jumping 32.2%.
- Why this matters: When interest rates drop — even modest declines — both prospective buyers and refinancers take notice. This double-digit year-over-year growth in mortgage applications tells us there’s significant pent-up demand waiting for the right moment to finally make a move. For real estate professionals, this is a strategic moment. Stay close to your active buyers, and proactively re-engage past clients who may now be in a better position to re-enter the market.
MORTGAGE RATES DECLINE IN JULY; TREASURY YIELDS RISE MID-MONTH. The average 30-year fixed-rate mortgage dipped in July, ending the month at 6.72%, 10 basis points (bps) lower than in June, according to Freddie Mac. Meanwhile, the 15-year rate declined 9 bps to average at 5.86%. Compared to a year ago, the 30-year rate is down 13 bps and the 15-year rate is down 28 bps. The 10-year Treasury yield, a key benchmark for long-term borrowing, averaged 4.37% in July—a 6-bps decline from June. After an initial mid-July rise, yields fell to around 4.2% on August 1 following the release of the latest Jobs report as investors perceived an increased likelihood of a rate cut at the Fed’s next meeting in September. Full story from EYEONHOUSING →
- Why this matters: Buyers and sellers are highly attuned to market conditions because it impacts their purchasing power. In turn, financial markets remain focused on the Federal Reserve’s policy direction. Keep an eye on major economic indicators to anticipate potential shifts. This week, for instance, I’ll be keeping an eye on Tuesday’s Consumer Price Index (CPI) release, which depending on inflation trends may influence further movement in the bond and mortgage markets. Use these moments as strategic opportunities to inform your clients, provide context, answer questions, and position yourself as a trusted resource in a rapidly evolving landscape.
DID LOWER MORTGAGE RATES ALREADY LOWER HOUSING INVENTORY? Housing inventory saw an unexpected week-to-week drop from 865,620 to 859,096 — unusual for early August. While mortgage rates below 6.64% may be a factor, inventory growth had already been slowing since late June. New listings peaked in late May and are now in seasonal decline, with the latest numbers showing a negative year-over-year change. Full story from HousingWire →
- Why this matters: One of the most encouraging developments in the housing market throughout 2024 and into 2025 has been the steady growth in inventory and the deceleration of home-price appreciation. While the anticipated seasonal decline in listings is now underway, the year-over-year drop in new listings was unexpectedly sharp. This trend will be something to keep an eye on in your local market, as a contracting pool of available listings can intensify competition and drive renewed buyer urgency even amid broader market cooling. For homeowners considering a sale, reduced inventory may present a strategic advantage, since less competition can potentially result in stronger offers.
MARKET FLIP: EXISTING HOMES OUTPRICE NEW HOMES. In Q2 2025, the median existing home price reached $429,400 — surpassing the median new home price of $410,800 by a record $18,600, according to the U.S. Census Bureau and non-seasonally adjusted National Association of Realtorsdata. Typically, new homes carry a price premium over existing homes, though the gap has shrunk recently: the average difference was $66,000 between 2010 and 2019 and fell to $24,800 over the past five years. But this trend reversed in 2024. New home prices have dropped year-over-year for nine consecutive quarters, while existing home prices have risen for eight. Full story from EYEONHOUSING →
- Why this matters: This market reversal is a conversation starter. For buyers, it may mean a better deal in new construction. For sellers, it underscores the complexity of today’s environment, where nuanced market conditions make strategic pricing more critical than ever.
BOTTOM LINE:Markets don’t move in a straight line — and the same holds true for opportunity. Fluctuations in interest rates, inventory levels, and pricing dynamics are creating new avenues for both buyers and sellers. Your job this week: stay informed, communicate with clarity and confidence, and translate market headlines into actionable strategies that empower your clients to make confident decisions.
Disclaimer: this is a compilation of industry news from trade media and industry groups; it does not share any forward-looking predictions or projections.