US Finance and Insurance Sector NAICS 52

Feb 12, 2026 - Existing Home Sales Dip to Biggest Slump in Four Years

• US existing-home sales slumped 8.4% in January to a 3.91 million annual rate - the steepest monthly drop in nearly four years - highlighting how stubbornly high mortgage costs are still weighing on lending activity. The National Association of Realtors said snowstorms, skittish consumers, and elevated prices cut short a late 2025 sales rebound. Mortgage rates have come down, with the average 30-year loan near 6.1% versus about 6.9% a year ago, trimming monthly payments for new borrowers. But rising home prices are blunting the benefit. The median existing home price climbed 0.9% from a year earlier to $396,800, keeping many would-be buyers (and their mortgage applications) on the sidelines. Lenders are seeing more hesitation as buyers take longer to commit and fewer rush to lock in loans, even as minor interest rate relief keeps hope alive for a healthier spring buying season.
• Wells Fargo says US consumer lending should keep growing this year, underscoring a healthier outlook for the financial industry as banks lean on credit cards and auto loans for growth. CFO Mike Santomassimo told a UBS conference that credit card balances are rising steadily, driven by newer products and expanded offerings for wealth management clients. Auto lending is also gaining traction, helped by financing partnerships with Volkswagen and Audi, while the bank expects its mortgage business (hit hard by higher interest rates) to stabilize after a prolonged slump. The growth push follows the Federal Reserve’s removal of Wells Fargo’s $1.95 trillion asset cap in mid-2025, freeing the bank to expand its balance sheet and scale investments across lending and investment banking. Santomassimo said consumer spending remains solid early in the year and credit quality across both consumer and commercial portfolios remains strong, with no signs of broad-based deterioration.

• US home and auto insurers are facing mounting political pressure as profits surge largely because of steep premium increases that have strained household budgets. After suffering post-pandemic losses, insurers pushed through aggressive rate hikes - especially in homeowners insurance - driving the property-and-casualty industry to its strongest underwriting profits in nearly two decades. Home-insurance rates rose an average 6% last year, according to S&P Global (more than double inflation) with much larger increases in high-risk states such as Colorado and California, while auto rates have only recently stabilized in some markets. The disconnect between higher premiums and near-record earnings has fueled calls for profit caps, including a proposal from New York Governor Kathy Hochul. Insurers argue such caps would reduce competition and force market exits, saying profits reflect delayed recovery and regulatory lag, but critics say affordability concerns are being sidelined as earnings remain elevated.
• The Trump administration has proposed capping credit card interest rates at 10% for one year, beginning January 20, 2026, aiming to reduce the burden of high interest for American consumers. Trump argues current rates - often above 20% - are unfairly high and need to be limited. Financial industry leaders and economists counter that such a cap could restrict access to credit, particularly for borrowers with lower credit scores, because banks would struggle to make profitable loans under the limit. Major banks like JPMorgan and Citi have warned the cap could hurt consumers and the broader economy. The plan has drawn mixed political reactions: some praise its intent to help borrowers, while others - including lawmakers - doubt its legal feasibility without congressional approval. Implementation details remain unclear, and experts caution about unintended consequences, such as reduced credit availability and shifts to higher-cost lending alternatives.