Tag Archive for Federal Reserve

Confidence In Economy Hits Five Year High

February 3, 2014 Housing Market Comments Off on Confidence In Economy Hits Five Year High

Americans grew more confident in the economy in 2013, according to recently released data from Gallup. Though their perception of economic conditions and the future direction of the economy experienced some ups-and-downs throughout the year, Americans were more optimistic than in years past, with gains seen across several key indicators. Gallup’s Job Creation Index, for example, gained two points from its year-before level, while economic confidence rose five points and average daily spending increased to $88, a $16 improvement over 2012. Overall, Americans were more confident in the economy than in the previous five years, which is a positive sign that the economy is recovering from the most recent recession. Still, Gallup warns that it is unclear how strong the economic recovery is due in part to the support its received from the Federal Reserve over the past two years. This year, the Fed will begin winding down some of the economic stimulus that has been keeping interest rates at historic lows and helping boost the economy and housing market. Though this has the potential to drive rates up, the Fed has indicated that it will keep short-term rates low until unemployment drops or inflation becomes a concern. More here.

Economy To Pick Up After Slow Winter

November 27, 2013 Housing Market Comments Off on Economy To Pick Up After Slow Winter

Americans’ view of the economy took a hit following the government shutdown and debt ceiling debate. And, because this winter will see additional budget and debt issues – in addition to the appointment of a new Federal Reserve chair in January – the most recent forecast from Fannie Mae’s economic & Strategic Research Group sees a few more months of suppressed consumer spending and economic growth. Still, the outlook calls for growth to pick up next year, as the labor market improves and the fiscal drag wanes. Doug Duncan, Fannie Mae’s chief economist, said the November economic and housing forecast reflects many of the themes from the previous month, especially the effect of government gridlock on consumer attitudes. Sentiment toward housing also weakened because of the shutdown, despite low single-family mortgage rates and continued year-over-year price gains. More here.

Economic Confidence Improves Despite Uncertainty

September 29, 2013 Uncategorized Comments Off on Economic Confidence Improves Despite Uncertainty

After nearly reaching positive territory in early June, Americans’ confidence in the economy has been on a downward trajectory, according to Gallup’s Economic Confidence Index. In recent weeks, economic confidence has been negatively impacted by the crisis in Syria, stagnant job growth, upcoming negotiations over the federal debt limit, and uncertainty over the Federal Reserve’s bond-purchasing program. Still, the most recent reading found a small improvement from previous weeks. According to the index, 40 percent of Americans now say the economy is getting better rather than worse, with 19 percent rating the economy as excellent or good and 36 percent saying it is poor. Gallup notes that Americans have generally been more confident in the economy this year, though they are still more negative than positive in their assessment of current conditions and the economic direction.

Continuation Of Fed Program Alters Rate Forecast

September 24, 2013 Uncategorized Comments Off on Continuation Of Fed Program Alters Rate Forecast

Federal efforts to support the ailing economy and strengthen the housing market began in 2009. The effects of these efforts have kept mortgage rates down and housing affordability high, resulting in a rebounding market and increasingly healthy economy. Because of this, expectations that the Federal Reserve would begin winding down its bond-buying program, have led to an increase in mortgage rates and forecasts of a coming economic slowdown. But, despite indicating the program would be cut back by the end of this year, the Fed recently announced it would continue the program and insisted there is no preset course or schedule for ending the purchases. Analysts expect that the continuation of the program will result in a break from the increases in mortgage rates seen over the past few months. More here and here.