Consumer Attitudes are Positive in Fed Survey

A survey released today by the New York Fed revealed that consumer expectations have improved in regards to the job market and household finances. Consumers are also optimistic about housing prices, as home price change declined slightly in March. CF Funding is happy to see a positive outlook returning to consumers as the economy improves.

Expectations for inflation increase rose slightly on the one-year and three-year scale. The one-year expectation rose 3.2 percent and the three-year expectation rose 3.4 percent. Expected home price change declined in all quartiles for the second month in a row, and is now at the lowest level since October 2013. Home price expectations in the West, however, are expected to grow more strongly than other areas.

In regards to the labor market, earnings growth rose to 2.4 percent, which is the highest level since the survey began in June 2013. According to the NY Fed’s Press Release, “The upper quartile has grown considerably over the past few months” and “the average perceived chance of finding a job among the currently employed (if current job was lost) rose to 49 percent.” The perceived chance of being laid off fell slightly. The age group between 40 and 60 saw about 45 percent chance of finding a replacement job, while those over 60 saw about a 30 percent chance. This was an improvement from February’s expectations, which were the lowest since the survey began (for those over 60).

CF Funding is happy to share that household income expectations were stable in the survey, and household heads under 40 have an expected income growth of 4.6 percent. More Americans believe that credit is easier to obtain in comparison to a year ago, and expectations for debt delinquency have declined slightly. This is consistent with CF Funding’s recent news article “Foreclosures Down 35 Percent from Last Year” in which the lender shared that foreclosure inventory is down 35 percent nationally from last year, and less than 1.9 million mortgages are in serious delinquency. Consumer attitudes were also positive in this month’s Fannie Mae National Housing Survey, as 52 percent of respondents believe it would be easy to get a home mortgage and 68 percent of consumers said they would buy if they were to move.

CF Funding Corporation will continue to post mortgage industry updates on the lender’s Facebook page at www.facebook.com/cffundingcorp and the CF Funding blog at http://cffundingcorporation.blogspot.com/ . Those who are looking to buy a home in 2014 should contact the lender directly at (888) 344-3080 or submit a form for a free pre-approval at www.cffunding.com. 

Consumer Attitudes are Positive in March 2014 Housing Survey

Last month, CF Funding reported positive results from the February Fannie Mae National Housing Survey, sharing that home price expectations rose 7 points and 68 percent of respondents said it is a good time to buy a home. This month the lender is happy to share more good news, as 69 percent of respondents now believe it is a good time to buy a home, and 68 percent said they would buy if they were going to move (up 2 points from February). The percent of respondents who believe it would be easy to get a home mortgage has increased by 7 points to a score of 52, an all-time survey high that has only been matched in January of this year.

CF Funding is happy to share that the average 12-month home price change expectation decreased from 3.2 percent to 2.7 percent. Those who expected home prices to stay the same increased by 4 points to 42 percent. The lender agrees with Mortgage News Daily’s prediction of a “pickup in home buying and selling activity this spring” due to positive consumer attitudes in the survey. As Jann Swanson reported in today’s article “Fannie Survey Hints at Warmer Spring for Housing,” over 50 percent of respondents expect mortgage rates to increase over the next year, yet most believe it will be easy to get a mortgage.

The survey also revealed an improvement in personal finances, as 40 percent of respondents said their financial situation improved during the past year, and those who expect their finances to worsen in the next 12 months decreased from 15 to 12 percent. Unfortunately, the number of respondents who believe the economy is on the right track decreased slightly from 35 percent in February to 33 percent in March.  The share of respondents who said their household expenses are significantly higher than 12 months ago decreased from 36 to 33 percent, and most respondents (58 percent) said their household expenses are about the same.

CF Funding would like to remind readers that although home prices are expected to rise, rental prices are also expected to rise. In regards to home rental attitudes, the expected 12 month rental price change was 4.2 percent, a slight decrease from last month’s 4.3 percent. The percent of respondents who believe home rental prices will increase over the next year was 52, up slightly from 51 in February. 41 percent believe rental prices will stay the same, and 4 percent believe they will go down.

According to Fannie Mae, the Monthly National Housing Survey polled a nationally representative sample of 1005 respondents between March 1 and March 23 for the results of this survey.

To keep up with mortgage news updates be sure to follow CF Funding on Facebook at www.facebook.com/cffundingcorp.