According to “CNN Money.com”, consumer confidence is improving – not in how they answer the polls, but in how the consumer is spending. People were saving more last year, as they feared their personal job loss, as well as the stability of the economy. This year, consumer spending is greater, and has improved more quickly than many economists thought would show at this stage in the economic recovery. A key report on retail sales (which is due out on Thursday) is expected to show the best increase in sales in three years – a 6% growth. Auto sales are also improving, with almost every automaker reporting double-digit percentage gains in March.
As consumer confidence gets stronger, more buyers will be more willing to commit to a new mortgage – which should help even out home prices. Nationally, home prices have experienced three quarters’ of month-over-month gains. Good news.