The latest economic indicators point to a surprising comeback for the American economy under President Donald Trump, which has made some Democrats feel uneasy. Year-end numbers suggest that Trump’s policies are beginning to yield positive results, despite some earlier skepticism.
Mortgage rates have significantly declined, now resting at 6.18 percent. That’s a drop from over 7 percent at the beginning of the year. Lower mortgage rates, paired with a decline in overall shelter inflation to just 3 percent, have surely made life easier for many homebuyers. One report notes that a buyer purchasing a median-priced home of $410,000 could save around $200 monthly compared to last year. Housing affordability is improving, with Lawrence Yun, the chief economist for the National Association of Realtors, stating that the combination of reduced mortgage rates and rising wages is “helping buyers test the market.”
The inflation rate saw a notable dip too, coming in at 2.7 percent in November. This is a far cry from the 9.1 percent peak noted under President Biden in June 2022. Such positive changes underscore the effectiveness of the current economic approach.
Meanwhile, the gross domestic product (GDP) grew a surprising 4.3 percent in the third quarter, far exceeding the 2.4 percent recorded at the end of Biden’s term. This upswing in growth coincides with a reported decrease in the trade deficit, alongside rising tariff revenues. Treasury Secretary Scott Bessent remarked on the current momentum, stating, “We’re still going to finish the year probably 3.5 percent GDP growth, which is incredible—with a shrinking budget deficit.”
Voter sentiment indicates a shift as well. A Harvard CAPS/Harris survey revealed that 55 percent of registered voters trust Trump and the Republican Party to manage the economy. This poll reflects a strengthening confidence in GOP economic management, giving them a 10-point advantage over Democrats.
Trump himself has reinforced his administration’s accomplishments during speeches, declaring, “Eleven months ago, I inherited a mess, and I’m fixing it.” He highlighted significant price reductions in essentials like gasoline and food. Presenting a stark contrast, he noted, “Under the Biden Administration, car prices rose 22 percent, and in many states, 30 percent or more. Now under our leadership, they are all coming down and coming down fast.”
Ultimately, the economic landscape is evolving in a direction that appears to favor the Republicans. As Trump’s policies begin to take root, they may very well reshape voter perceptions heading into the 2026 elections. With tangible improvements in the economy, Democrats may find themselves in a precarious position as they head into the new year.
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