Chicago, IL (PRWEB) April 14, 2014
A survey released Monday, April 14th 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 http://www.facebook.com/cffundingcorp.