ECONOMIC EXPECTATIONS

I expect annualized 25Q2 GDP growth of about 2%, resulting in 25H1 annualized growth of, at best, 1%, vs. 2.3% for 24H1. As for 25H2, annualized GDP growth will probably be 1%, meaning CY2025 growth of 1%, anemic, but not negative. As for existing home sales, they come in at 4.05 million, effectively unchanged from 2023 and 2024. Regarding home prices, I expect them to be flat in CY2025.