Housing Data in Focus as Mortgage Rates Move Lower
September 22, 2025
.jpg "Business-Woman-Thinking (7).jpg")
As expected, the Federal Reserve (Fed) reduced its benchmark interest rate by 25 basis points last week.1 During his post-meeting press conference, Fed Chair Jerome Powell pointed to growing risks in the labor market and continued weakness in the housing sector as key reasons for easing monetary policy.2
This week’s economic calendar is highlighted by recent data on the state of the housing market, as mortgage rates approach their lowest levels in nearly three years.3 Key releases include new home sales on Wednesday, followed by existing home sales on Thursday.4
With inflation remaining above the Fed’s 2% target, investors will also be closely watching Friday’s release of the August Personal Consumption Expenditures (PCE) Price Index.5 Economists forecast a 0.3% increase in headline PCE for August, while core PCE — which excludes food and energy — is projected to rise by 0.2%.6 Additional monetary easing this year will likely depend on some improvement in the upcoming inflation data.
Sources:
1,2Federal Reserve Board – Transcript of Chair Powell’s Press Conference September 17, 2025
3CBS News – Mortgage interest rates just fell to a 3-year low. Here's why (and what to do now); 9/17/25
4-6MarketWatch – U.S. Economic Calendar; as of 9/22/25
This blog post is for informational use only. The views expressed are those of the author(s), and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.
Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client. Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.
Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice. The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete. Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements. Actual results may differ significantly. Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.
Investing involves risk, including possible loss of principal. Past performance is no guarantee of future results. All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.
High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.
All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.
