RealPage Economy Express Episode 42

by   Arben Skivjani
  Posted   February 21, 2025
  in   Insights ,   Economy Express

Episode 42: While the U.S. economy is showing resilience, there are underlying challenges.

  • Unemployment claims edged up to 219,000 last week, a 5,000-claim increase, reports the U.S. Department of Labor.
  • Builder confidence dropped to 42, the lowest in five months, due to tariffs, mortgage rates and rising costs, according to the National Association of Home Builders.
  • Building permits inched up 0.1% in January but remain 1.7% lower than a year ago, reports the U.S. Census Bureau. Housing starts fell 9.8% from December and 0.7% year-over-year.
  • Mortgage activity is cooling. Applications fell 6.6% last week, even though 30-year fixed rates slipped to 6.9%, per the Mortgage Bankers Association report. Refinance applications dropped 7% but remain higher than the year-earlier rate.
  • Inflation remains a real concern. Consumer prices rose 0.5% in January, bringing the annual inflation rate to 3%. Shelter costs drove much of the increase, while energy prices climbed 1.1%.
  • The Conference Board’s Leading Economic Index fell 0.3% in January, reversing recent gains.
  • GDP growth for 2025 is projected at 2.3%, with stronger momentum in the first half.
  • Federal Reserve Chair Jerome Powell indicated interest rate cuts are on pause until inflation shows progress.
  • New tariffs are on the horizon, making it difficult to reduce inflation moving ahead.

For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

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