U.S. Economy

President Trump on Dec. 31, 2025 signed a presidential proclamation delaying for one year planned tariff hikes that would have raised tariffs on upholstered furniture from the current 25% to 30% and on kitchen cabinets and vanities from 25% to 50% (the higher rates had been scheduled to take effect Jan. 1, 2026), leaving the September-imposed 25% tariffs in place. The White House framed the move as part of a "laser-focused" affordability push and ongoing trade talks — after recently rolling back some food tariffs — while economists warn such levies have pushed up consumer prices (household furnishings +4.6% year-over-year) and strategists say delays give the administration flexibility to ease costs for voters.

New National Association of Realtors data show U.S. existing‑home sales totaled 4.06 million in 2025, essentially unchanged from 2024 and the lowest level since 1995, as record‑high prices and mortgage rates near 7% for much of the year kept many buyers out. The national median existing‑home price rose another 1.7% to $414,400—marking a 30‑month streak of year‑over‑year price gains—while December’s median of $405,400 set a record for that month. Mortgage rates eased late in the year, with the average 30‑year rate falling to 6.15% by December, helping push December sales to a 4.35 million annualized pace, up 5.1% from November and the fastest in nearly three years. Inventory ticked up to 1.18 million homes, a 3.3‑month supply that is still far below the 5–6 months considered a balanced market, reflecting more than a decade of underbuilding and a lock‑in effect from owners sitting on lower‑rate mortgages. The article notes that the Trump administration has floated measures such as 50‑year mortgages, a ban on large institutional homebuyers and a $200 billion mortgage‑bond purchase program to lower borrowing costs, but economists cited say these would likely have only limited impact on the structural shortage and affordability crisis.