Daily Rundown

December 16, 2025

Chart of the Day

Number of the Day

67.0 - Share of home builders using sales incentives in December, the highest percentage since 2020

Quote of the Day

"Builders continue to face supply-side headwinds, as regulatory costs and material prices remain stubbornly high. Rising inventory has also increased competition for newly built homes." - NAHB Chief Economist Robert Dietz

Monday's Highlights

The NAHB home builder sentiment index (December) ticked up to an eight-month high 39.0 from a prior 38.0.

The Empire State manufacturing index (December) fell to -3.9 from a prior 18.7.

Quick Commentary

Housing activity is perking up a bit, due in part to the pullback in mortgage rates and in part to rising incentives and falling prices (yesterday's NAHB report indicated that 40.0 percent of home builders are cutting prices this month). With affordability still near rock-bottom levels -the housing affordability index remains below its lowest point during the housing boom of the mid-2000s- home prices will be challenged to rise much in the years ahead absent a significant pickup in the pace of economic growth.

Today's Highlights

Employment

Retail sales

Business inventories

Lennar earnings

Daily Trivia

What was the last company headquartered on the East Coast to rank as the most valuable in the U.S. by market cap?

(Friday's Question: What retailer has embraced the faux French pronunciation of its name, first overheard from a Minnesota customer in the 1960s, as a means of reinforcing its "upscale discount" marketing strategy? Answer: Target)