Consumers bullish on housing in May
Elevated home prices, mortgage rates and economic uncertainty have weakened demand, but consumers are starting to feel more upbeat about the housing market, a survey suggests.
Five out of the six components of mortgage giant Fannie Mae's Home Purchase Sentiment Index increased in May compared to April, including buying conditions, selling conditions, mortgage rates, job loss concerns and home price outlook. The change in household income was the only category that declined last month.
The boost in sellers' optimism is a surprise, given that more listings hitting the market across the country are providing increased competition and giving buyers negotiating power they haven't had since before the onset of the COVID-19 pandemic.
The survey tracks "housing-related attitudes, intentions and perceptions," according to Fannie Mae. The government-sponsored enterprise polled a national sample of 1,345 household decision-makers ages 18 and older between May 1 and 20.
Tariff truce brightens small business outlook
The 90-day truce between the trade war between the United States and China over tariffs helped small business sentiment rise for the first time in 2025, Wells Fargo said.
The National Federation of Independent Business' Small Business Optimism Index increased 3 points in May to 98.8, erasing an April decline, according to a report by the banking giant.
"That said, a simultaneous increase in small business uncertainty highlights the evolving nature of trade negotiations," the report said.
A vibrant housing market helps fuel consumer spending that is key to small business sustainability and expansion.
Small businesses are most concerned about taxes, and that's likely to remain the case in the coming months as Congress finalizes its tax and spending bill, according to Wells Fargo.
Household income strongest in Virginia
Virginia ranks No. 1 in the U.S. for household income, according to a report from WalletHub.
The consumer website analyzed the 50 states and Washington, D.C., based on the average annual income of the top 5% earners, the average income of the bottom 20%, and the median income for all residents.
Virginia's top 5% earners make an average of $533,522 a year, while the bottom 20% average $19,293.
"While there is a big gap between these two numbers, the top 5% ranks as the third-highest in the nation, while the bottom 20% ranks fourth," the website said. "In other words, both the rich and the poor are doing better than their counterparts in other states."
New Jersey had the second-highest household income, according to WalletHub, followed by New York. West Virginia ranked last.