Federal Reserve minutes revealed rising concern over housing, noting weak demand, increased listings, and falling prices as a potential economic risk.
Policymakers linked housing slowdown to broader threats, including weaker consumption growth, tariffs, labor challenges, and risks from artificial intelligence impacting employment.
Housing market data showed subdued activity: flat sales, modest price declines, and weak new home construction with permits hitting multi-year lows.
Analysts expect subdued home prices and weaker activity ahead, with high mortgage rates and builder incentives signaling ongoing housing softness in 2025.