U.S. Economy Teetering: What Connecticut Should Watch Now
- Neil Caron
- Sep 24
- 2 min read
September 24, 2025 | Economic Insights | Presented by ReadySetLoan™️
Key Takeaways
Economist Mark Zandi of Moody’s Analytics warns that the U.S. economy is on the brink of recession as we head toward late 2025. While not officially in a downturn yet, several red flags are flashing.
Jobs have slowed dramatically — growth in employment is nearly stalled. Most of the new jobs being added are in relatively stable but low-wage sectors: health, education, and government.
Inflation pressure is increasingly obvious — rising tariffs, policy shifts, and costs for basic goods are driving up prices at the store. Zandi forecasts inflation could reach above 3%, possibly near 4%.
Housing market showing weakness — single-family home starts & construction are losing momentum. Inventory of unsold homes is growing. Incentives that propped up buyers earlier are becoming less effective.
Policies & trade add risk — restrictions tied to tariffs and immigration policy are negatively affecting company profits and labor supply.
What It Means for Connecticut
Connecticut, with its higher cost of housing, real estate taxes, and insurance burdens, is particularly vulnerable if a recession hits. Things to watch here:
Mortgage rates & financing incentives may get squeezed further.
Buyers may pull back earlier in their search due to rising prices & tighter credit.
Sellers who priced aggressively could face longer time on market or need to offer more incentives.
Neil’s Take 🎤
“Right now, we’re seeing warning signs that can’t be ignored,” says Neil Caron, Area Sales Manager at CMG Mortgage. “For Connecticut homebuyers, that means financial clarity is more critical than ever. Know your budget, know your loan options, and avoid surprises.”
🐷 RSL Piggy Points
The job market is the biggest warning light—it’s not collapsing yet, but growth is weak.
Inflation & tariffs are squeezing everyday costs.
Housing is losing its earlier support from incentives.
Policy still matters—immigration and trade decisions are rippling into the economy.
RSL Perspective
At ReadySetLoan™️, we believe preparation beats panic. In economies showing signs of strain, buyers and sellers who plan carefully gain advantage. For buyers: line up your financing early, understand what a recession could mean for rates and costs. For sellers: focus on value, transparency, and being realistic about pricing.
Final Lap
We may not be in recession yet—but all the warning signals are there. For Connecticut’s homeowners and aspiring buyers, this moment is about grounding decisions in financial clarity. ReadySetLoan™️ is here to help you navigate that terrain confidently.
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