Confidence is high despite the housing slowdown

Consumer confidence hit an 18-year high in August with a reading of 138.4 (record is 144.7 in 2000). The strong economy and labor market picture has boosted the assessment of current economic conditions and there was a noticeable uptick in the short-term outlook. Consumer sentiment dipped slightly in September (99.0), but remains above the average reading of 98.5 for 2018. Near record consumer confidence/sentiment levels should continue to support healthy consumer spending that drives two-thirds of the U.S. economy.

The housing market has clearly slowed in recent months as higher mortgage rates have eaten into affordability. New home sales rebounded 3.5% in August to a seasonally-adjusted annual rate of 629,000 units, but the pace of sales in June and July were revised lower. There is 6.1 months of supply available and that is considered a decent balance between supply and demand. As mortgage rates have topped 5%, borrowing costs are increasing at a time when prices are already inflated from a 10-year housing rebound.

Published Works

Over the past twenty years, Michael has written five books on behavioral finance and emotional investing to help clients make better investment decisions and reach their goals. His latest work below on the left is designed to help individuals recognize and better manage their behavioral investing biases in any stage of life or market environment.

Available on Amazon
Available on Amazon
Available on Amazon
Available on Amazon
Available on Amazon