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Key Economic Signals: Inflation, Interest Rates & Housing Trends

  • July 23, 2025
Inflation ticked up in what most economists saw as an indication that the impact of new tariff policies were beginning to show up in prices. There are wide disagreements - between analysts, investors, economists, high officials in government - as to what will occur with inflation in the 2nd half of 2025.

This analysis and data were compiled by our friend Patrick Carlisle at Compass.

Chart of monthly CPI and core inflation from 2021 to June 2025, with June readings of 2.7% and 2.9%.

The Fed continues to refuse to lower their benchmark rate despite enormous political pressure to do so. They cite the strong economy and the potential for inflation to increase. Expectations regarding the timing and size of future cuts fluctuate constantly. 

Chart of federal funds interest rates from 1981 to 2025, annotated with major economic events and Fed policy changes.

In recent months, interest rates have been ticking up and down (and up) within a relatively narrow band of values:  Below are conforming-loan and jumbo rate charts. 

Chart of weekly 30-year mortgage rates from 2023 to July 2025, with rate trends and economic event annotations.

Chart of jumbo mortgage rates from 2018 to 2025, showing a low near 2.8% in 2021 and a peak above 8% in 2023.


The Consumer Sentiment (Confidence) index ticked up slightly on July 18's release, but remains very low by long-term standards:  "Consumer sentiment was little changed from June [and]…while sentiment reached its highest value in five months, it remains… well below its historical average… Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen…At this time, [there is] little evidence that other policy developments, including the recent passage of the tax and spending bill, moved the needle much on consumer sentiment. Year-ahead inflation expectations fell for a second straight month, plunging from 5.0% last month to 4.4% this month…the lowest since February…[But indications are] that consumers still perceive substantial risk that inflation will increase in the future." University of Michigan Surveys of Consumers, Director Joanne Hsu, 7/18/25 

Consumer sentiment chart from 1978 to July 2025, annotated with recessions, recoveries, and a red current-reading line.

Stock markets hit new all-time highs. 

Chart comparing Nasdaq and S&P 500 gains through July 2025, with sharp volatility in spring 2025.

An overview of Bay Area County (and Sacramento) median house sales prices in Q2, and year-over-year appreciation rates. 

Chart compares Q2 2025 median house prices and annual price changes across 12 Bay Area and Sacramento counties.

Cities & towns with largest population gains through mid-July 2024:  These gains in the last year measured were enormously impacted by immigration into the country, which is now, with changes in federal policy, apparently shifting into reverse. This may have significant ramifications for Bay Area markets, since Bay Area population and housing demand have been enormously affected by immigration. Of course, deportation efforts are focused on illegal immigrants - who don't play a huge role in our housing markets (beyond their impact on home construction), but anti-immigration and tariff policies may dramatically affect the immigration of those who have  previously flocked here for high-paying high-tech jobs and opportunity, and who have played a big role in buyer demand.

U.S. map of 100 cities and towns with largest population gains, July 2023–July 2024

The latest look at where housing construction is concentrated in the U.S.:  Some of these regions - Florida and Texas are often mentioned - have reportedly seen a greater softening in their housing markets in 2025 due to an oversupply of new homes on the market. (There are other issues, such as insurance availability and costs, also at play in those regions, as well as in CA.)

U.S. county map showing housing unit percentage changes from 2023 to 2024, with growth and loss shaded by color.
 
 






 
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Meet Alexander

Meet Alexander Lurie

Alexander Fromm Lurie is a highly accomplished San Francisco real estate professional and the leader of The Lurie Group, a top-performing team recognized among the top 1% of agents in the city. With over a decade of experience in the real estate industry and California DRE License #01952347, Alexander has built a reputation for delivering exceptional results, with hundreds of homes sold and over $1 billion in total sales volume. Born and raised in San Francisco, he brings deep local expertise, generational knowledge of the Bay Area, and a strong connection to the community into every client relationship. His approach goes beyond transactions—focusing on helping clients build meaningful connections to neighborhoods, schools, and local culture while navigating the buying or selling process with confidence.

Alexander’s background in management consulting and entrepreneurship further strengthens his strategic approach to real estate, allowing him to provide clients with a competitive edge in pricing, negotiation, and marketing. Known for his integrity, discretion, and client-first mindset, he continues to be a trusted advisor for buyers, sellers, and investors across San Francisco’s dynamic real estate market.

Alexander Lurie

Founder | Real Estate Advisor
LICENSE NUMBER
01952347
ADDRESS
629 Divisadero Ave, San Francisco, CA 94117

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