As Retail Sales plunged 0.9% -- the steepest mark in two years -- and Consumer Sentiment surged by 8.3%, we have to (once again) question if the University of Michigan Consumer Sentiment survey is of any use at all.
Assuming that there is a lag between a consumer's "improving feelings about the economy" and the time they spend their dollars, we would expect that the improvement since February would translate into Retail Sales improvements, too.
It didn't, and it hasn't (in this very small sample set).
Here are the questions of the University of Michigan Consumer Sentiment survey, courtesy of the Federal Reserve Bank of Philadelphia:
500 people are polled and the answers to these five questions are used to predict the future of consumer spending.
However, how people say they'll act and what how they actually act are two very different things. As the chart above illustrates.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Barry L. Systems Analyst
The Mortgage Reports is an excellent resource. I depend on the Mortgage Reports for the most up-to-date information regarding shifts in government policy and mortgage rate information in general.
Judy T. Business Owner
I read The Mortgage Reports every day.
Jerolyn C. CPA
The Mortgage Reports isn't just basic mortgage rate information -- it's analysis on rate changes and trends, and updates on the laws in lending. Subscribing to the site's daily updates is worthwhile.
2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)