Sharkey, Howes & Javer

This week on “Inside the Economy,” we break down 2024 market performance, how finances for US households look going into 2025, and the housing market. The S&P 500 Index is in rare air with back-to-back 20%+ returns in 2023 and 2024. Should we expect another 20%+ in 2025? US consumers remain resilient with spending on goods and services finishing strong in 2024. Can US consumers continue to spend at the same rate in 2025? US home affordability remains historically low, and homeownership continues to hover around 62%. High interest rates with long-dated bonds back to their highest level over a year have kept a lid on refinancing and mortgage activity. Where will the US housing market go in 2025? Overall, we continue to see a normalization in the US dollar and interest rates. Tune in to learn more! Key Takeaways: • US housing annual growth remains around its long-term average of 4-7% • 30-year bonds moved back to their highest yield in more than a year, just shy of 5% • US Debt and the US Dollar continue to cl