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S&P 500 Rides 12% YTD Surge Fueled by Tech and Consumer Discretionary

  //house-home.news-articles.net/content/2025/12/1 .. e-fueled-by-tech-and-consumer-discretionary.html
  Published in House and Home on Sunday, December 14th 2025 at 5:21 GMT by USA Today

Stock Market, Real‑Estate Trends and Home‑Price Momentum: A Snapshot of 2025

By USA TODAY – December 14, 2025

The December 14, 2025 article on USA TODAY pulls together a dozen data points and expert opinions to paint a nuanced picture of how the U.S. stock market, real‑estate market and home‑price trajectory are converging—or diverging—at the end of a volatile fiscal year. Below is a comprehensive summary of the article’s key themes, with added context drawn from the links the piece references.

1. Stock Market: The S&P 500 Continues to Trade Higher

The article opens with a snapshot of the S&P 500, noting that the index has gained 12 % year‑to‑date after a strong rally in the third quarter. According to the linked CNBC article that tracks the index, the rise has been fueled largely by technology and consumer‑discretionary stocks, which have benefited from the continued shift toward digital services and e‑commerce. The piece also highlights a recent dip in the sector’s volatility—measured by the VIX—indicating that investors are currently confident about a moderate but steady economic expansion.

The Yahoo Finance link the article follows provides real‑time charts of the S&P 500’s performance, underscoring that the 52‑week high was hit again on December 9, 2025, just days before the USA TODAY piece was published. Analysts quoted in the article warn, however, that a rapid increase in short‑term interest rates could pose a “systemic risk” if the Federal Reserve’s policy tightening continues unabated.

2. Real‑Estate Market: A Seller’s Market Persists

While the stock market has been riding a wave of optimism, the housing market has remained a bit more complicated. The article cites the National Association of Realtors (NAR) 2025 annual report, which indicates that the median home price climbed 7 % from the previous year’s $500,000 to $535,000. This surge is attributed to the combination of a tight supply of homes—inventory has fallen to a 12‑month low—and persistent demand from both first‑time buyers and those looking to upgrade.

The U.S. Census Bureau data linked in the article shows that the number of new home construction starts was down 8 % compared to the previous quarter, a trend that has amplified the scarcity issue. The article further underscores how the low inventory has pushed many buyers to the “competition” side of the market, with homes often selling above listing price, as seen in the recent Zillow data.

The article also points out that this seller‑market dynamic is a double‑edge sword: while sellers are reaping record profits, buyers are confronting a steepening affordability curve. The Federal Reserve’s decision to raise the benchmark overnight rate to 5.75 % is cited as the primary driver of this shift, with mortgage rates already hovering in the 7 % range for 30‑year fixed loans—up from the 5‑year average earlier in the year.

3. Mortgage Rates: Rate‑Hike Momentum Continues

To give readers a sense of how the Fed’s policy is playing out on the ground, the article follows a link to a Mortgage Bankers Association (MBA) briefing. According to the MBA, mortgage rates have continued to climb steadily, with the average 30‑year fixed mortgage rate now at 7.2 %. The piece notes that the uptick in rates is “a sign that the market is digesting the Fed’s tightening cycle,” but it also highlights that rates are still well below the 8‑to‑9 % peak seen earlier this decade.

The MBA report also points out that despite higher rates, home‑buyer sentiment remains “optimistic,” primarily because the rate rise has been gradual and because many buyers are still able to secure loan approvals at rates below 7 %. The article also ties this sentiment to the ongoing “home‑price inflation” narrative—if home prices rise faster than the inflation-adjusted rate of return on housing, the market could experience a correction.

4. Investment Shifts: Stock Market vs. Real‑Estate

A recurring theme in the article is the ongoing debate between investing in real estate versus equities. The piece references a Bloomberg article that delves into the performance of real‑estate investment trusts (REITs) versus the S&P 500. Bloomberg’s data shows that REITs have lagged the S&P 500 by about 4 % YTD, largely due to the higher borrowing costs associated with property financing.

For investors, the article suggests that the choice between the two asset classes hinges on risk tolerance and time horizon. Those with a longer horizon may still prefer the relative stability of the S&P 500, especially as the index continues to benefit from earnings growth across multiple sectors. Meanwhile, the real‑estate market—particularly in high‑demand metro areas—appears to be on a “buy‑the‑dip” cycle, with many analysts predicting that the market will sustain price growth in the next 12‑18 months.

5. What This Means for Consumers and Investors

The USA TODAY article concludes with a set of take‑aways for both everyday consumers and portfolio‑managing professionals:

• Consumers: Even though mortgage rates have climbed, the cost of borrowing remains relatively low compared to the past decade. If you’re in a buyer’s market, now might still be a good time to secure a fixed‑rate mortgage, but be prepared for higher closing costs.

• Investors: The S&P 500 continues to offer solid returns, especially for those who can weather short‑term volatility. However, if you’re looking for tangible assets that can serve as a hedge against inflation, the real‑estate market—especially in high‑growth regions—remains attractive.

• Policy‑watchers: The Federal Reserve’s path will remain the single most influential factor affecting both markets. Any change in the Fed’s trajectory could have immediate repercussions on housing affordability and equity valuations.

Bottom Line

At the crossroads of a high‑growth stock market and a tight‑supply real‑estate market, the December 14 article from USA TODAY underscores that the U.S. economy is in a delicate balancing act. The S&P 500’s continued rise reflects corporate earnings resilience, while the real‑estate market’s upward price trend, driven by low inventory and sustained demand, is tempered by rising mortgage rates and the Fed’s policy stance. For investors and consumers alike, the article advises a careful assessment of risk and opportunity, citing both national data and expert analysis to guide decision‑making in a complex and evolving landscape.