08/29/2025
July Market Report | Ada & Canyon 🏡✨
📊 In a split decision, the Federal Reserve left its key policy rate unchanged at a range of 4.25% to 4.5%. This rate has remained within this range since December 2024. The national average for mortgage interest rates was 6.74% as of July 24th. Mortgage rates have remained stuck above 6.6% in the U.S. since the beginning of the year, contributing to bad affordability conditions for homebuyers nationally.
It is still the expectation that the Federal Reserve will cut interest rates in the near future, but less clear how this would impact mortgage rates.
📉 Inflation held stead in July, defying predictions of tariff-driven price hikes and increasing the odds of a Federal Reserve rate cut next month. Overall prices rose 2.7% in July when compared to a year earlier, the same annual increase that was seen in June according to the US Labor Department’s Consumer Price Index (CPI).
🏡 The typical American still does not earn enough to keep up with monthly mortgage payments.
Nationally, the typical U.S. household earned roughly 48% less than what’s recommended to afford a $439,950 home, which is the national median list price for July. The generally accepted “30% rule” suggests that a household should not spend more than 30% of its gross monthly income on housing costs, which include mortgage payments, property taxes, and insurance.
An analysis of July data from all 50 states shows that the minimum recommended income to afford a median priced home exceeds the state-level median income by anywhere from just under 0.6% to 138%.
🏞️ Idaho is currently ranked #6 in the nation for housing affordability. The median home list price in July across Idaho was $599,450 compared to a statewide median income of $77,609. This makes the recommended income to purchase a home at the currently median sales price 103.59% of the actual median income in the state.
