Tag Archive for ‘household balance sheets’

Measures of Consumer Confidence Mixed

Measures of consumer confidence were mixed in April. According to Thomson Reuters and the University of Michigan, the Consumer Sentiment Index fell by 2.8% on a monthly seasonally adjusted basis to 76.4. The final reading of consumer sentiment was revised up from the preliminary reading of 72.3 that was released earlier in the month. Conversely, the Conference Board reported that… Read More ›

Consumer Credit Expands

The total amount of consumer credit outstanding continues to climb. According to the most recent release by the Federal Reserve Board, the total amount of consumer credit outstanding expanded by seasonally adjusted annual rate of 7.8% in February to a seasonally adjusted level of $2.8 trillion. This is the eighteenth consecutive monthly increase in consumer credit outstanding. Over this period,… Read More ›

Household Balance Sheets: Fiscal Cliff Impact

During the fourth quarter of 2012, household balance sheets improved with increases in home values and reductions in mortgage debt, thereby boosting household net worth. These are favorable improvements that will help housing demand in 2013. However, since the end of the Great Recession such developments have typically been associated with a decline in the personal savings rate. Due to the Fiscal Cliff, the data… Read More ›

Consumer Credit Expands, but HELOCs Continue Their Decline

Household debt outstanding rose for the first time in two years. According to data released by the Federal Reserve Bank of New York, household debt grew by $31.0 billion in the fourth quarter of 2012. The quarter-on-quarter not seasonally adjusted growth in household debt reflected an expansion in outstanding mortgages, auto loans, credit cards, and student loans. In the fourth… Read More ›

Refinancings Contribute to A Lower Average Mortgage Debt Burden

Mortgage applications eased for the second consecutive week. According to the Mortgage Bankers Association, mortgage application activity, which includes both refinancing and home purchase demand, was 1.7% lower on a seasonally adjusted basis in the week ending Feb. 15. In the week ending February 8, the market index fell by 6.4%. The most recent decline in weekly seasonally adjusted mortgage… Read More ›

Securitizations of Household Debt Accounted For Bond Market Growth

U.S. bonds outstanding have grown from $2.5 trillion in 1980 to $36.9 trillion in 2011. Over this period mortgage-related and asset-backed securities accounted for much of this increase. According to Chart 1, the amount of mortgage-related and asset-backed securities outstanding grew from $0.1 trillion in 1980 to $10.2 trillion by 2011. The growth in mortgage-related and asset-backed securities exceeded the… Read More ›

Quality of Residential Mortgages Expected to Improve in 2013

In its January release, which generally covers the fourth quarter of 2012, the Senior Loan Officer Opinion Survey documented answers by senior bank officers on their outlook for loan quality in 2013. On net, which is the difference between the percent of respondents expecting an improvement in loan quality and the share of respondents expecting weaker loan quality, senior bank… Read More ›

Revolving Credit Growth Moderate, but Underlying Dynamics Showing Signs of Recovery

According to the Federal Reserve Board, consumer credit outstanding, which is composed of credit not secured by real estate, expanded at a seasonally adjusted annual rate of 7.0% to $2.8 trillion in November. This is the fourth consecutive monthly increase in consumer credit outstanding and the second consecutive month that the monthly increase has risen. Following a 0.8% decline in… Read More ›

Consumer Prices Decline On Falling Energy Costs; Gas Prices Fall but Household Energy Increases

The Bureau of Labor Statistics (BLS) has reported that its Consumer Price Index for Urban Consumers, CPI-U, declined on a monthly seasonally adjusted basis of 0.3% in the month of November. This is the first decline for the headline index since May 2012. The decline in the CPI-U largely reflects a steep fall in energy prices, which fell by 4.1%… Read More ›