Folks here in Florida and across the nation are feeling better about their budgets as of late, improving the picture for a full economic recovery. In fact, word from a recent University of Michigan and Reuters study reports that Consumer Sentiment increased for the fifth straight month in June.
What you need to take away from this news report is this:
Consumer Sentiment has reached its highest level since September 2008 – or “black September.” You might recall, this was the month that Lehman Brothers failed, Fannie Mae and Freddie Mac were taken under Federal control, and the global financial crisis is believed to have peaked.
We like it when consumer confidence increases, because a confident consumer is more likely to make the big-ticket purchases (like Florida homes), which move the nation’s economy forward.
That said, the Consumer Sentiment Survey has its flaws.
First, the survey used a sample set of only 500 families – small by any research standard. A sample group this small doesn’t exactly represent a cross section of the nation. Heck – it barely represents a cross section of Lakeland, Florida!
Second, just because folks feel better about their financial situation, doesn’t mean they’ll rush out to spend. Novel idea – hey! They may actually start saving!
Truth is, there will always be a difference between what folks say they’ll do and what they actually do. However, if consumer spending does increase in the months ahead, you can expect home sales to benefit on the willingness of families to “take more chances.” Of course, they’ll want to move quickly, as Florida mortgage rates will then suffer on concerns for inflation.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
No related posts.
