Monthly Archives: October 2016
Consumers are now more confident in the economy than they have been in the previous 12 years.
The Index of Consumer Sentiment increased 0.3% from December to 98.5 in January, according to the Survey of Consumers conducted by the University of Michigan. This marks an increase of 7.1% from January of last year.
“Consumers expressed a higher level of confidence January than any other time in the last dozen years,” Surveys of Consumers Chief Economist Richard Curtin said. “The post-election surge in confidence was driven by a more optimistic outlook for the economy and job growth during the year ahead as well as more favorable economic prospects over the next five years.”
This is a turnaround from the decrease at the start of the month, when the index slipped down to 98.1.
The Current Economic Conditions slipped 0.5% from December, but was still up 4.6% from last year.
“Consumers also reported much more positive assessments of their current financial situation due to gains in both incomes and household wealth, and anticipated the most positive outlook for their personal finances in more than a decade,” Curtin said.
“Consumers have become more convinced that the stronger economy would finally prompt the Fed to increase interest rates at a quicker pace, which caused one-in-five consumers to favor borrowing-in-advance of anticipated increases in mortgage rates, the highest level in more than twenty years,” he said.
The Index of Consumer Expectations also increased by 0.9% from last month’s 89.5 and up 9.2% from 82.7 last year to 90.3 in January.
An article by Jill Mislinski for Advisor Perspectives explains what this means historically:
The Michigan average since its inception is 85.4. During non-recessionary years the average is 87.6. The average during the five recessions is 69.3.
“Overall, the post-election surge in consumer confidence was based on political promises, and not, as yet, on economic outcomes,” Curtin said. “Moreover, over the past half century the surveys have never recorded as dominant an impact of partisanship on economic expectations.”
Foreclosure rates dropped more than any year on record in 2016, according to the first look at December 2016 mortgage data report by Black Knight Financial Services, a Fidelity National Financial company and a provider of integrated technology, data and analytics solutions that facilitate and automate many of the business processes across the mortgage lifecycle.
Foreclosures dropped by 30% in 2016, and the inventory of loans in active foreclosure declined by more than 200,000 loans, according to the report.
Another report showed that foreclosure activity dropped significantly in 2016 to its lowest point in 10 years, according to the 2016 U.S. Foreclosure Market report from ATTOM Data Solutions, a fused property database.
For the month, December’s 59,700 foreclosure show a decline of 24% from the same time last year. Delinquencies also decreased by 0.91% monthly and 7.5% from December 2015.
While some states saw delinquency rates much higher than the national average, most still saw significant improvement from the previous year.
Here are the top 5 states with the highest 90+ days delinquency rates: