Home price growth expectations retreated for the second month in a row
Consumers’ expectation about their household financial situations improved in August, while expectations for home price growth retreated for the second month in a row, according to the Survey of Consumer Expectations released for the month by The Federal Reserve Bank of New York.
The NY Fed found that median home price change expectations declined to 3.6% in August from 3.7% in July and 3.9% in June, still remaining above its trailing 12-month average of 3.4%.
The survey also found indications of greater dispersion in perceptions of credit access compared to a year ago. The proportion of respondents reporting harder access to credit increased from 27.1% to 28.2% and the proportion of those reporting easier access also increased from 23.7% to 24.1%.
Meanwhile, August recorded a slight improvement in expectations for year-ahead credit availability. The proportion expecting improving conditions in credit access increased from 19.7% to 21.1%.
August also posted an increase in the average perceived probability of missing a minimum debt payment over the next three months from 11.8 % in July to 12.8%, its highest level since October. The survey revealed that the increase was broad-based across education and income groups.
There was a considerable improvement in the one-year-ahead expectations of households’ financial situations, with 44.5% of respondents expecting to be better off financially, compared to 41.4% in July. Eleven percent said in August that they expect to be worse off financially, compared to 12% in July.
