An increase in credit access was reported in April according to the Mortgage Bankers Association’s Credit Availability Index (MCAI).
The Index increased 0.5 percent month-over-month to 122.0 in April. The increase was driven by new offerings of FHA’s 203K home improvement program, new VA offerings, and new jumbo products.
The MCAI and its four components are designed to show relative credit risk/availability based on information about borrower eligibility and underwriting criteria gathered for over 95 lenders and investors and combined with data from Ellie Mae’s All Regs Market Clarity product.
Consumer confidence declined in September, rebounded in October and jumped more than two points in a preliminary November estimate, beating economic forecasts and hitting a more than seven-year high.
The Thomson Reuters/University of Michigan Index of Consumer Sentiment registered 89.4 in a mid-month reading, the best showing since July 2007. Economists had forecast the measure would hit 87.5, with some predicting as high as 89.
What factor have contributed to this improvement? The declining of oil prices and an improving job market were probably the main factors that led to this surge in consumer sentiment. A more favorable business conditions perhaps also helped the consumers’ view of the present situation. This solid increase suggests consumers have largely dismissed concerns about slowing global growth and have ignored the sharp swings in financial markets earlier this month
US consumers expect better economic growth and rising incomes in the coming months and overall positive growth in our economy, leading to a stronger dollar and making other investments more attractive. Consumers regained confidence and are more optimistic now about their future earnings potential, and with the holiday season getting closer and closer, we may see ever higher numbers in consumer’s confidence.
What about the Housing Market? Considering that the Federal Financing Housing Agency has recently opened more doors for eligibility criteria in the purchase of homes, we expect to continue with good news about the economic outlook in general.