Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
The U.S. housing market in 2025 offers cautious optimism, with Bank of America predicting better supply and steady mortgage rates. However, affordability and inventory shortages are expected to limit the pace of recovery, keeping many buyers and sellers on the sidelines.
2025 Housing Market: Challenges and Mild Improvements Ahead
While a survey by Bank of America predicts a slight uptick in activity in the US home market in 2025, it also notes that high mortgage rates and affordability issues would keep things slow.
After dropping from their all-time high of 8% last year to 6% earlier this year, mortgage rates have since recovered and are back at 7%. In 2025, rates are expected to stay in the 6-6.5% range, according to BofA analysts. This will keep the "lock-in effect" going strong, since homeowners with low rates are hesitant to sell, Investing.com shares
Cost is still a major issue. Median home prices are about four times the median income, which has led to a persistent lack of affordability, even if there has been some progress since 2022. In the United States, a single-family home could be purchased for as little as $412,000 in October, while the median income was $102,000.
Improved Housing Supply Faces New Constraints
As a result of fewer delays and more completed projects, the report states that supply has improved. Nevertheless, builders are faced with constraints caused by high mortgage rates and expenses, and the inventory of existing homes is at an all-time low.
The market may find support from persistent demand for housing and from slow but steady income growth. In 2025, if mortgage rates remain stable, according to BofA, existing home sales will reach about 4.2 million. Although renting is still less expensive in 82 out of 97 large U.S. cities, the ratio of mortgage payments to rent has decreased, indicating better conditions in some areas.
Affordability Likely to Improve Gradually
As long as salaries continue to outperform inflation and interest rates stabilise, affordability should gradually return to levels experienced in the early 2000s. However, high mortgage rates will continue to be a barrier for both buyers and sellers, thus BofA warns that the recovery will be slow.
