Consumer Expectations are Making a Comeback

first_imgHome / Daily Dose / Consumer Expectations are Making a Comeback The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles About Author: Brian Honea Demand Propels Home Prices Upward 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Consumer Expectations are Making a Comeback Servicers Navigate the Post-Pandemic World 2 days ago Consumer Expectations House Prices Household Income New York Fed Survey of Consumer Expectations 2016-03-14 Brian Honea March 14, 2016 2,777 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News Share Save The expectations of consumers toward inflation, the economy, housing, personal finances, and the labor market were up across the board, which suggests that expectations are on the rebound, according to the results from the February 2016 Survey of Consumer Expectations (SCE) released by the New York Fed on Monday.As core inflation is rising heading into the Federal Open Market Committee’s second meeting of 2016, which starts Tuesday and concludes Wednesday afternoon, the median inflation expectations of consumers increased over-the-month at both the one-year horizon (from 2.4 percent to 2.7 percent) and at the three-year horizon (from 2.5 percent to 2.6 percent).“The increase was most pronounced among respondents with lower income, lower education and lower numeracy,” the New York Fed said, noting that the median inflation expectations at both horizons remained at the low end of the range observed in the last two and a half years.The median home price expectation rose by 0.1 percentage point from January to February, up to 3.1 percent, according to the SCE. The home price expectation was broad-based, though it was most pronounced in the West and Northeast. Despite the increase, the median home price expectation remains below the series average, according to the New York Fed.The median one-year ahead expected earnings growth reversed two months of decline by jumping up to 2.5 percent in February, the level it was at for most of last year. Though the increase was broad-based, the respondents with a high school degree or less saw the most pronounced increase. The results of the February SCE indicated that expectations in the labor market were more positive—the mean number of respondents who said they thought the unemployment rate would be higher a year from now declined from 38.1 percent in January to 37.9 percent in February. Also, the mean probability of losing one’s job in the next 12 months ticked slightly downward to 13.9 percent.Consumers’ expectations of their finances jumped in February—the median expected household income growth rose from 2.2 percent to 2.5 percent over-the-month, driven by older, less educated, and lower income respondents, according to the New York Fed. Despite the increase, it remained below 2015 levels.Click here to view the entire SCE for February 2016.center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Subscribe Tagged with: Consumer Expectations House Prices Household Income New York Fed Survey of Consumer Expectations Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: Fannie Mae and Freddie Mac Make First Contribution to Housing Trust Fund Next: Counsel’s Corner: Digging Deeper Into the 9th Circuit Court Decision on GSEs Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more