Consumers expect positive changes to come in terms of credit availability, with 22 percent of those recently surveyed by the Federal Reserve Bank of New York reporting it easier to obtain credit next year. The survey, the Survey of Consumer Expectations (SOE) for November 2016, gauged expectations regarding inflation and prices, including in housing, in the future.
Less consumers reported an expectation that home prices will change, along with an expectation that household income will grow, according to the survey. Median home price change expectations decreased from 3.2 percent in October to 3.1 percent; median household income growth expectations, as well, decreased from 2.5 percent in October to 2.4 percent—movement driven by those without a bachelor’s degree and young households. Median household spending growth expectations increased from 3.2 percent in October to 3.6 percent.
Consumers’ expectation of missing a minimum debt payment in the next three months grew again, according to the survey, this time to 14.9 percent from 14.4 percent in October, and especially in households where the head holds no more than a high school degree.
The survey also measured consumer expectations on inflation and the labor market, with median inflation expectations increasing from 2.6 percent in October to 2.7 percent—a minor fluctuation when compared to trends seen previously this year. Median earnings expectations, at the same time, decreased from 2.1 percent in October to 2.0 percent.
Source: Federal Reserve Bank of New York
For the latest real estate news and trends, bookmark RISMedia.com.
