From the Desk - Economic Commentary
Scott Hofer, Member Strategies Manager - 12/19/2025
U.S. stocks are higher this morning as the artificial intelligence trade attempts to regain its footing. On the economic front, existing home sales increased just 0.5% in November, missing expectations and down from the 1.5% increase in October. Inventory dropped 5.9% month-over-month, and the median price of a home sold in November was $409,200, an increase of 1.2% from a year ago. Homes are staying on the market longer at 36 days compared to 32 days a year ago and the current sales pace represents a 4.2-month supply.
Also released this morning, the final consumer sentiment reading for December indicated sentiment increased 1.9 points to 52.9, below expectations. The release stated that buying conditions for durable goods fell for the fifth straight month, whereas expectations for personal finances and business conditions rose. Also, most consumers still expect unemployment to continue rising during 2026. The year-ahead and long-run inflation expectations decreased to 4.2% and 3.2%, respectively.
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