June Market Update 2025

For quite some time, we’ve seen monthly inflation readouts with figures in the 2-3% range. Despite the fact that inflation seems to be under wraps for now, the median monthly Principal & Interest payment has grown faster than inflation, with the most recent reading representing a 3.94% increase on a year-over-year basis. This shows that there are still inflationary pressures at work in the housing market.

Mortgage rates have remained high, in the mid to high 6% range for quite some time. Some believe that the recent trade war was implemented in part to bring down interest rates. However, judging by recent commentary from the Fed, the trade war and the associated uncertainty have only made Fed officials more cautious in utilizing the federal funds rate. This means that we are probably going to see elevated mortgage rates for the foreseeable future, unless the economy takes a considerable turn for the worse.