The University of Michigan's Consumer Sentiment Index rose to its best levels since our Recession began. This is very important because housing demand is very clearly tied with how consumers feel about economic conditions and their own financial outlook.
Consumer Sentiment rose to 73.3 in May, up from the April reading of 72.2. Buried within this report were two other nuggets: The survey showed that the consumer inflation expectation index rose to 3.1% which is the highest reading since June of 2009. Inflation naturally causes mortgage rates to increase, so we need to keep an eye on this.
The survey's gauge of current economic conditions edged upward to a very high 81.1 and the barometer of consumer expectations also rose in May to 68.3. This is very good news for our economy and the housing market!
Call us with any questions you have relating to residential mortgages (208) 287-1717, we are always very happy to help. We specialize in home loans for first time home buyers, move up buyers, second home purchases, and resort lending. The loan products available to my clients include FHA, IHFA, VA, Conforming Conventional, Jumbo and Super Jumbo Portfolio.
Our primary markets are Ada County (Boise, Eagle, Meridian, Kuna, Star), Canyon County (Nampa, Caldwell, Middleton), and Valley County (Cascade, Donnelly. Tamarack, McCall).
I know my business has held steady even after the end of the tax incentives! I think it will be a great year.
I haven't seen the recession as much in the Midwest as we have seen on the West coast and of course in my business, it's all about the default unfortunately...as a Court Appointed Receiver/Asset Mgr. I think that people are just being more cautious than ever before and really taking the time to look at the big picture instead of the "moment" when purchasing a home. Maybe we are getting a whole new group of more "responsible" purchasing power...at least that's my take on it.