In the first quarter of 2023, the U.S. economy showed signs of a slowdown under President Trump's second term, with economic growth slipping for the first time since 2022. Although hiring remained strong and wages steady, consumer confidence dipped significantly, raising concerns about future job and income expectations. Mortgage rates remained stable, and more homes were listed, contributing to a rise in housing inventory. However, the required income for buying homes has surged 70% over six years, impacting homeownership rates, particularly among younger households.
This week, we were given our first look at how the U.S. economy is performing under President Donald Trump's second term in office. Overall, economic growth slipped in the first quarter for the first time since 2022.
If they're right, this is likely to mean slower growth or potential declines in both spending and investment. But despite concerns about what lies ahead, mortgage rates were fairly steady this week.
The income required to buy a median-priced home rose 70% compared with six years ago. This is an important reason why homeownership rates slipped in the first quarter.
Weekly housing data showed that aside from the Easter holiday, momentum has been fairly consistent throughout April. Pending home sales rose in March, but continue to lag behind their year-ago pace.
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