The expectation among consumers that home prices will change has declined slightly, while household spending expectations rose, according to the Federal Reserve Bank of New York’s recently released Survey of Consumer Expectations (SOE) for September 2016.
Median home price change expectations decreased from 3.3 percent in August to 3.1 percent in September, most notably among consumers in the Northeast, according to the survey’s results. Median household spending growth expectations, conversely, increased from 3.3 percent to 3.7 percent.
Consumers’ expectations of a change in credit availability have also improved, the survey’s results indicate. More survey respondents reported “easier credit conditions” than one year ago. However, consumers’ expectations of missing a minimum debt payment in the next three months grew, especially among lower-educated and younger survey respondents.
The survey also gauged consumer expectations on inflation and the labor market, with median inflation expectations decreasing from 2.7 percent in August to 2.6 percent in September, and median earnings expectations decreasing from 2.4 percent in August to 2.0 percent in September.
Source: Federal Reserve Bank of New York