Real Wages and Housing Market Gains Signal Positive Midterm Outlook for GOP
FOX Business’ Grady Trimble has the details on ‘Varney & Co.’
American workers are experiencing modest gains in purchasing power alongside a rise in housing activity. This comes as the Trump administration refines its economic messaging in anticipation of the midterm elections, as reported by FOX Business reporter Grady Trimble on Thursday.
During a speech in Detroit, President Trump emphasized recent economic growth and easing inflation as indicators that the U.S. economy is on track for improvement by 2026. He pointed to stronger-than-expected GDP growth in parts of 2025 and relatively stable inflation as signs that the economy could continue to improve—an argument the administration believes may favor Republicans in the upcoming elections.
AFTER 80-MINUTE TRUMP ADDRESS, GOP LAWMAKERS SAY MOMENTUM IS BACK AS HEALTHCARE FIGHT LOOMS
According to data from the Bureau of Labor Statistics, real wages adjusted for inflation saw a modest increase over the year ending December 2025, with real average hourly earnings rising approximately 1.1% compared to the previous year.
A “Sold” sign stands outside a home following a snowfall in Geneseo, Ill., on Monday, Jan. 20, 2020. (Daniel Acker/Bloomberg via Getty Images / Getty Images)
The housing market has shown late-season momentum, with existing home sales rising approximately 5.1% in December 2025—the largest monthly increase in nearly two years and the fourth consecutive month of growth, according to the National Association of Realtors. However, overall home sales for 2025 remained near historic lows.
These data points provide the administration with economic indicators to highlight as the midterm elections draw near, although broader metrics such as labor market trends and consumer sentiment present mixed signals.
Piper Sandler Chief Global Economist Nancy Lazar noted that the housing rebound appears gradual and sustainable, attributing it to easing mortgage rates, slower home price growth, and some improvements in labor market conditions.
THE SALARY NEEDED TO BUY A HOME IN THE MOST AFFORDABLE US CITIES
Lazar indicated that affordability is beginning to improve and could strengthen further in 2026 if wages continue to rise faster than home prices. She emphasized the need for a healthy, moderate housing recovery, cautioning against another boom that could exacerbate affordability issues.
In this undated photo taken at an undisclosed location, a person holds a stack of money. Real wage growth was touted as a positive sign for the GOP on Thursday. (iStock / iStock)
“At the end of the day, a gradual recovery in housing is what we need. Affordability is improving, and the administration is helping. The business cycle will also play a role as we move through 2026,” Lazar stated.
While economist Art Laffer refrained from predicting whether the improving economic data will translate into Republican gains in the midterms, he noted that the numbers indicate strong growth.
Former Reagan economic adviser Art Laffer provides his perspective on the current economic landscape and highlights strong GDP growth on ‘Varney & Co.’
“The last three quarters under Trump have shown incredible economic growth according to the most important number, which is real GDP,” Laffer remarked. “Real GDP growth is almost 5% at an annual rate. That’s incredible.”
Laffer also pointed out that headline employment figures may obscure underlying strength, attributing softer overall numbers to demographic trends rather than significant job losses. He noted that job growth among certain worker groups has compensated for slower growth in others.
WHITE HOUSE ‘LASER FOCUSED’ ON AFFORDABILITY AS TRUMP SOFTENS TARIFF STRATEGY
Piper Sandler Chief Global Economist Nancy Lazar joins ‘Mornings with Maria’ to analyze the state of the U.S. economy in 2026, the impact of AI, an increase of consumer spending and more.
“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 expressed optimism, highlighting strong corporate earnings growth and elevated profit margins. He noted that productivity gains—especially those linked to artificial intelligence—could support faster growth without triggering inflation.
FOX Business’ Grady Trimble has the details on ‘Varney & Co.’
American workers are experiencing modest gains in purchasing power alongside a rise in housing activity. This comes as the Trump administration refines its economic messaging in anticipation of the midterm elections, as reported by FOX Business reporter Grady Trimble on Thursday.
During a speech in Detroit, President Trump emphasized recent economic growth and easing inflation as indicators that the U.S. economy is on track for improvement by 2026. He pointed to stronger-than-expected GDP growth in parts of 2025 and relatively stable inflation as signs that the economy could continue to improve—an argument the administration believes may favor Republicans in the upcoming elections.
AFTER 80-MINUTE TRUMP ADDRESS, GOP LAWMAKERS SAY MOMENTUM IS BACK AS HEALTHCARE FIGHT LOOMS
According to data from the Bureau of Labor Statistics, real wages adjusted for inflation saw a modest increase over the year ending December 2025, with real average hourly earnings rising approximately 1.1% compared to the previous year.
A “Sold” sign stands outside a home following a snowfall in Geneseo, Ill., on Monday, Jan. 20, 2020. (Daniel Acker/Bloomberg via Getty Images / Getty Images)
The housing market has shown late-season momentum, with existing home sales rising approximately 5.1% in December 2025—the largest monthly increase in nearly two years and the fourth consecutive month of growth, according to the National Association of Realtors. However, overall home sales for 2025 remained near historic lows.
These data points provide the administration with economic indicators to highlight as the midterm elections draw near, although broader metrics such as labor market trends and consumer sentiment present mixed signals.
Piper Sandler Chief Global Economist Nancy Lazar noted that the housing rebound appears gradual and sustainable, attributing it to easing mortgage rates, slower home price growth, and some improvements in labor market conditions.
THE SALARY NEEDED TO BUY A HOME IN THE MOST AFFORDABLE US CITIES
Lazar indicated that affordability is beginning to improve and could strengthen further in 2026 if wages continue to rise faster than home prices. She emphasized the need for a healthy, moderate housing recovery, cautioning against another boom that could exacerbate affordability issues.
In this undated photo taken at an undisclosed location, a person holds a stack of money. Real wage growth was touted as a positive sign for the GOP on Thursday. (iStock / iStock)
“At the end of the day, a gradual recovery in housing is what we need. Affordability is improving, and the administration is helping. The business cycle will also play a role as we move through 2026,” Lazar stated.
While economist Art Laffer refrained from predicting whether the improving economic data will translate into Republican gains in the midterms, he noted that the numbers indicate strong growth.
Former Reagan economic adviser Art Laffer provides his perspective on the current economic landscape and highlights strong GDP growth on ‘Varney & Co.’
“The last three quarters under Trump have shown incredible economic growth according to the most important number, which is real GDP,” Laffer remarked. “Real GDP growth is almost 5% at an annual rate. That’s incredible.”
Laffer also pointed out that headline employment figures may obscure underlying strength, attributing softer overall numbers to demographic trends rather than significant job losses. He noted that job growth among certain worker groups has compensated for slower growth in others.
WHITE HOUSE ‘LASER FOCUSED’ ON AFFORDABILITY AS TRUMP SOFTENS TARIFF STRATEGY
Piper Sandler Chief Global Economist Nancy Lazar joins ‘Mornings with Maria’ to analyze the state of the U.S. economy in 2026, the impact of AI, an increase of consumer spending and more.
“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 expressed optimism, highlighting strong corporate earnings growth and elevated profit margins. He noted that productivity gains—especially those linked to artificial intelligence—could support faster growth without triggering inflation.
