Home sales rise, wages improve as White House builds midterm economic case

American workers are seeing modest gains in purchasing power and increased housing activity as the Trump White House sharpens its economic message ahead of the midterm elections, FOX Business reporter Grady Trimble reported Thursday.

In a speech in Detroit, President Trump highlighted recent growth and easing inflation as reasons the U.S. economy is positioned for 2026. He cited stronger-than-expected GDP growth in parts of 2025 and relatively stable inflation as evidence the economy could improve further — a case the administration believes may benefit Republicans in November.

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Real wages adjusted for inflation increased modestly over the year ending December 2025, with real average hourly earnings up about 1.1% compared with a year earlier, according to data from the Bureau of Labor Statistics.

The housing market showed late-season momentum, with existing home sales up roughly 5.1% in December 2025 — the largest monthly gain in nearly two years and the fourth consecutive month of increases, according to the National Association of Realtors. However, overall 2025 home sales remained near historic lows.

Together, these data points give the administration economic indicators it can highlight as the midterm elections approach, though broader metrics such as labor market trends and consumer sentiment show mixed signals.

Piper Sandler Chief Global Economist Nancy Lazar said Thursday that the housing rebound appears gradual and sustainable — pointing to easing mortgage rates, slower home price growth, and some improvements in labor market conditions.

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She said affordability is beginning to improve and could strengthen further in 2026 if wages continue to rise faster than home prices.

"I think a healthy, moderate housing recovery is what we need. We don't need another boom. We've had three booms and housing cycles since the 2000s, and every one of them has led to a surge in house prices and makes the affordability issue more dramatic," she told "Mornings with Maria."

"At the end of the day, a gradual recovery in housing is what we need. Affordability is improving, and administration is helping. But also the business cycle will help as we move through 2026."

While declining to predict whether improving economic data will translate into Republican midterm gains, economist Art Laffer said the numbers themselves point to strong growth.

"The last three quarters under Trump have shown incredible economic growth according to the most important number, which is real GDP," Laffer said. "Real GDP growth is almost 5% at an annual rate. That’s incredible."

Laffer also said headline employment figures mask underlying strength, attributing softer overall numbers to demographic trends rather than large job losses. He said job growth among some worker groups has offset slower growth in others.

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"That's going to be really good for Trump in the midterms, I hope, I think," Laffer added. "But you need to get a pollster to know how the election is going to turn out."

Market strategist Adam Johnson also struck an optimistic tone, pointing to strong corporate earnings growth and elevated profit margins. 

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He said productivity gains — including those tied to artificial intelligence — could help support faster growth without stoking inflation.