Consumers more pessimistic about economy

October 25th, 2011

Consumer confidence in October 2011 was at its lowest point since March 2009, according to the latest survey by the Conference Board. The Consumer Confidence Index dropped 6.6 points to 39.8 from July as Americans grew more pessimistic about the economy.

Lynn Franco, director of the Conference Board's Consumer Research Center, said in a statement:

"Consumer confidence is now back to levels last seen during the 2008-2009 recession. Consumer expectations, which had improved in September, gave back all of the gain and then some, as concerns about business conditions, the labor market and income prospects increased. Consumers' assessment of present-day conditions did not fare any better. The Present Situation Index posted its sixth consecutive monthly decline, as pessimism about the current economic environment continues to grow."

Home prices show small gain

In other economic news, home prices edged up in August, according to the S&P Case-Shiller Home Index, the leading measure of U.S. home prices. The index showed a 0.2 percent gain for the 10- and 20-City Composites in August compared with July. According to David M. Blitzer, chairman of the Index Committee at S&P Indices:

The Midwest is one region that really stands out in terms of recent relative strength. Chicago, Detroit and Minneapolis have all posted very sharp monthly increases going back to May. These markets were some of the weakest during the crisis, particularly Detroit. But as of August 2011, Detroit is the healthiest when viewed on an annual basis. It is up 2.7% versus August 2010. Prices there are still back to their 1995 levels, but the recent pickup in the US auto industry may finally be helping."

Mortgage calculators can help

It's tough to decide whether to refinance strictly based on economic news. Using a free mortgage calculator can help you evaluate your personal situation to determine if refinancing makes sense. A refinance calculator can show how much you'd save (or not) by getting a new loan. And while it is tough to qualify for a loan with little home equity, recent changes to the government's Home Affordable Refinance Program (HARP) could allow you to refinance if you meet certain criteria.

Posted By :

Why the GDP announcement already seems like old news

November 13th, 2013

Stronger GDP growth in the third quarter shouldn't have enough impact to change your mortgage plans....  Read More

A second bite at the refinancing apple

November 06th, 2013

With housing prices continuing to rise while mortgage rates fall, new refinancing opportunities are being created...  Read More

Poor jobs report dampens economy, reveals silver lining for borrowers

October 30th, 2013

Discouraging economic news has a silver lining for mortgage shoppers, in the form of sharply lower rates....  Read More

Budget deal leaves mortgage rates stable -- for now

October 23rd, 2013

The budget deal removes one potential disruption from the mortgage market, but don't expect rates to stay stable forever....  Read More

0 Responses to "Consumers more pessimistic about economy"

No Comments

Leave a Comment