The Consumer Confidence Index (CCI) increased in March according to The Conference Board. It indicates that Q1 2015’s dramatic economic slowdown is probably a blip. The rejuvenated labor market and increasing home prices were the two largest contributors to consumers’ returning confidence. The index jumped 2.5 points to 101.3 from 98.8, defying previous projections that it would drop to around 96. Those numbers are benchmarked to the consumer confidence in 1985. That year was neither a peak nor a trough and has a score of 100. The Federal Reserve consults the CCI and today’s news fits with the Fed’s plan to gradually increase rates later this year. RealtyTrac announced today that wages are not keeping up with home prices however. Appreciation outpaced wage growth in 76 percent of the metro areas tracked (140 our of 184) which underlines that consumer confidence and the economy on the whole are getting better but are not yet fully healed.
Meanwhile conforming no point 30 year fixed mortgage rates average 3.75 percent with 15-year rates closer to 3 percent.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.