EXECUTIVE SUMMARY

New orders were down 9% compared to the prior month of May 2025 following the 11% increase over April 2025. However, new orders were up 3% in June 2025 compared to June 2024. Accordingly, year to date through June 2025, new orders are now down 2% compared to 2024 (down 3% last month).

Shipments were down 2% compared to the prior month of May 2025. Shipments were also down 2% in June 2025 compared to June 2024. Year to date through June 2025, shipments remain down 1% compared to 2024. June 2025 backlogs were down 8% compared to June 2024, and down 2% from May 2025.

Receivable levels were down 2% from May 2025, and down 6% from June 2024. Inventories and employee/payroll levels are again materially in line with recent months and the prior year. However, with the gradual decline in employees over the last 5 months, it does appear companies are continuing to allow some normal attrition to occur without rushing to find replacements.

Housing

Existing-home sales increased by 2.0% in July, according to the National Association of REALTORS® Existing-Home Sales Report.

The Report provides the real estate ecosystem, including agents and homebuyers and sellers, with data on the level of home sales, price, and inventory.

Month-over-month sales increased in the Northeast, South, and West, and fell in the Midwest. Year-over-year, sales rose in the South, Northeast, and Midwest, and fell in the West.

“The ever-so-slight improvement in housing affordability is inching up home sales,” said NAR Chief Economist Lawrence Yun. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”

“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020, during the COVID lockdown.”

Total Existing-Home Sales for July

•  2.0% increase in total existing-home sales month-over-month to a seasonally
  adjusted annual rate of 4.01 million.
• 0.8% increase in sales year-over-year.

Single-Family-Homes Sales in July

•  2.0% increase in sales to a seasonally adjusted annual rate of 3.64 million,
  up 1.1% from July 2024.
• $428,500: Median home price in July, up 0.3% from last year.

Condominiums and Co-ops Sales in July

• 2.8% increase in sales month-over-month to a seasonally adjusted annual rate of 370,000 units, down 2.6% year-over-year.
• $362,600: Median price, down 1.2% from July 2024.

Mortgage Rates

• 6.72%: The average 30-year fixed-rate mortgage in July, according to Freddie Mac, down from 6.82% in June and 6.85% one year ago.

Sales of new single-family houses in July 2025 were at a seasonally-adjusted annual rate of 652,000, according to estimates
released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.6% below the June
2025 rate of 656,000, and is 8.2% below the July 2024 rate of 710,000.

Compared to July 2024 on a seasonally-adjusted basis, sales were down 8.2% overall with sales also down 4.0% in the South,
down 23.5% in the Northeast, and down 19.9% in the West, but up 4.9% in the Midwest.

Other

Real gross domestic product (GDP) increased at an annual rate of 3.3% in the second quarter of 2025 (April, May, and June),
according to the second estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.5%.

The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation
of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 1.9%
in the second quarter, revised up 0.7 percentage point from the previous estimate.

Sales at furniture and home furnishings stores in July 2025 were up 1.4% compared to June 2025 on a seasonally-adjusted basis, and up 5.1% from July 2024. Year to date on a non-adjusted basis, sales were up 5.7% (same as last month).

Those of us who thought the industry had received some level of clarity on tariffs after months of uncertainty were dealt a surprise
this month with the doubling of India tariffs to 50%, the elimination of the $800 deminimis import exception, a delay in finalizing China rates, and most significantly the announcement of potential additional furniture-specific tariffs following a 50-day investigation into the industry.

Taken together, this will clearly create a new round of disruption for an industry looking for certainty and normalcy.
As to what we do know, while consumer confidence slipped slightly again this month and housing bumped along, positive trends with employment, consumer spending, stock markets, and GDP continue to persist in spite of various challenges. And as the Fed continues to take a wait and see approach to inflation despite immense pressure to cut rates in its upcoming September meeting, it’s difficult to determine how any nominal cuts would impact housing in the near-term before ultimately trickling down in the form of new
orders and revenues.

As to our own stats program, it was disappointing to see June’s 9% average decline in month-over-month new orders
after May’s 11% average increase. Hopefully this is a function of timing, as the year-to-date decreases in new orders (2%) and shipments (1%) for our participants through June 2025 seem materially in line with other industry and economic reporting.

With the two-month lag in our reporting period, we’re now halfway through the year, which coupled with this month’s news, may make it tough for the industry to make meaningful gains for 2025 as a whole. However, successful companies will prioritize their relationships with employees and customers and proactively control what they can control to take advantage of
available opportunities.