This article just came in from my friend Jim at Fidelity Mortgage:
U.S. consumer sentiment rose to its highest level in more than five years in November as consumers felt more optimistic about employment prospects and the outlook for the overall economy, a survey released on Friday showed.
The Thomson Reuters/University of Michigan preliminary reading on the overall index on consumer sentiment came in at 84.9, up from 82.6 the month before. “More consumers expected good rather than bad times financially in the economy in early November, not only for the year ahead but over the next five years as well,” survey director Richard Curtin said in a statement. “This was the most positive outlook for the overall economy in more than five years,” he said. What is the number one factor for housing demand? Is it a low interest rate? Is it location, location, location? Is it low home prices? No, the number one factor that drives housing is how a consumer feels about their current and future financial situation. Therefore, it is great news for the housing market that Consumer Sentiment has hit a five-year high.