Consumer Sentiment Jumps to Four Year High

While historically low mortgage rates and attractive home prices are important to make the housing market attractive, it is actually how a consumers feels about the economy and their own situation that drives demand.

U.S. consumer sentiment rose to its highest level in more than four years in May as Americans stayed optimistic about the job market, while higher income households expected to see bigger wage increases, a survey released on Friday showed. The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment rose to 79.3 from 76.4 in April, topping forecasts for 77.8 and an initial May reading of the same.

It was the highest level since October 2007.

Half of all consumers said the economy had improved during the past year, while buying plans for vehicles and household durables also improved. The gauge of buying plans rose to 132 from 126.

It looks like a strong season for housing now that we have strong consumer sentiment and historically low rates and excellent home prices.

Roxy Redenbaugh

ACMC Loan Consultant

Branch Manager

NMLS #269926

www.roxyloans.com

808-637-0011