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Increased Consumer Confidence Helps Boost Mortgage Apps and Sales
|With the holiday season quickly approaching and positivity sprinkled into both economic and housing market reports, consumers have become more confident. Increased confidence regarding job opportunities and other economic factors revealed in a report from The Conference Board likely also contributed to more real estate activity from buyers.
Monday, December 17th, 2012
With the holiday season quickly approaching and positivity sprinkled into both economic and housing market reports, consumers have become more confident. Increased confidence regarding job opportunities and other economic factors revealed in a report from The Conference Board likely also contributed to more real estate activity from buyers.
The confidence index increased to 73.7 percent in November, which was higher than projected by multiple news outlets including Bloomberg, Businessweek and MarketWatch who all expected the index would remain unchanged or post slight declines from the previous month. This also marks the highest level for the index since February 2008.
With the holiday season just around the corner, consumer spending will likely continue to increase throughout the remainder of the month and well into December. With stimulated retails and overall positive attitudes from consumers, economic reports may also post higher at the end of the year.
Additionally, the Expectations Index increased to 85.1 in November, from 84 in October while the Present Situation Index remained almost unchanged, moving slightly downward to 56.6 from 56.7 recorded the previous month. When regarding the housing market, 6.9 of participants said they planned on purchasing a property, which is a record high for the report. Together, high affordability offered by mortgage rates which have continuously reached new record lows in November and improved consumer confidence are credited with a higher amount of home sales.
More housing market activity may also be a result of more optimistic views on employment opportunities, as the index reveals 20.3 percent of respondents predicts more jobs will be available within the next two quarters, up from the 19.7 percent of consumers who agreed with this statement in October.
Additional information shows the number of consumers who believe business conditions are bad fell to 31.5 percent from the previous month's 33 percent. However, only 14.4 percent of consumers reported agreeing that current business conditions are good, down from 16.5 percent from the month before.
"This month's moderate improvement was the result of an uptick in expectations, while consumers' assessment of present-day conditions continues to hold steady," said Lynn Franco, director of economic indicators for The Conference Board. "Over the past few months, consumers have grown increasingly more upbeat about the current and expected state of the job market, and this turnaround in sentiment is helping to boost confidence."
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.