Other Economic Highlights

GDP Rebounds in Q2:
The U.S. economy grew by 3% in Q2 2025 after a 0.5% drop in Q1, according to the latest government report. The Q1 dip was largely due to a spike in imports as businesses stocked up ahead of potential tariffs. Since imports count against GDP, fewer imports in Q2 helped lift overall growth. Overall, the economy is averaging 1.25% growth in the first half of 2025.

Housing Market Activity Slows:
Pending Home Sales, which are signed contracts on existing homes, dipped 0.8% from May toJune. According to the National Association of REALTORS®, contract signings have seen small declines even as more homes hit the market. Still, many real estate professionals remain “optimistic” that activity will pick up in the coming months.

Annual Home Price Growth Remains Solid:
Home prices rose 0.4% from April to May before seasonal adjustments, but dipped0.3% after adjusting for typical spring trends, according to the Case-Shiller Index. Seasonal adjustments help smooth out predictable patterns, like increased buying activity in the spring. Prices are still 2.3% higher than a year ago. The FHFA Index showed similar results, with a 0.4% monthly gain before adjustments, a 0.2% drop after, and a 2.8% annual increase.

Signs of Softer Labor Sector:
New unemployment claims rose slightly to 218,000 last week, while continuing claims remained high at 1.946 million – a sign that more people are staying unemployed longer. Continuing claims have been above 1.9 million since mid-May, pointing to a softer job market. Job openings also fell to 7.4 million in June, well below the 2022 peak of over 12million. Some remote job listings may be posted in multiple states, which could mean the actual number of available jobs is even lower.