A glimmer of hope for the housing market

What It Covers

Pending home sales rose over 3% in November as mortgage rates hover around 6.2%, offering modest relief to a stagnant housing market while small businesses face tariff pressures and AI influencers reshape travel marketing.

Key Questions Answered

• •Housing Market Recovery: Pending home sales increased 3% in November after a 2.5% October rise, marking the best seasonal increase since 2023. Home price appreciation adjusted for inflation dropped 0.5% to 1%, improving affordability after prices rose 30-40% since 2019 while wages grew only 11%.
• •Mortgage Rate Threshold: Thirty-year fixed mortgage rates stabilized around 6.2% after peaking near 8% two years ago. Analysts predict rates must drop below 6% and ideally into upper 5% range to trigger meaningful increases in home buying activity and unlock inventory from existing homeowners.
• •Tariff Impact on Small Business: BusyBaby owner faces potential bankruptcy despite Walmart and Target contracts, with tariffs adding $48,000 to shipping costs. She drained retirement savings, eliminated salary, and reduced prices to zero profit margins just to maintain cash flow and keep operations alive through holiday season.
• •Minimum Wage Expansion: Nineteen states raise minimum wages January 1st, with Nebraska increasing 11%, Missouri 9%, and Florida 7%. For the first time, more workers will earn $15 hourly or greater than the federal $7.25 minimum, though researchers find modest employment effects even with substantial increases.