Daily News 10/28/14
October 28, 2014
Tuesday – October 28
The Census Bureau reported today that the U.S. homeownership rate fell to a 20-year low as stricter credit terms sidelined first time home buyers. The rate now stands at 64.4% in the third quarter of 2014, down from 64.7% in the second quarter, which is the lowest since the first quarter of 1995. In addition to the tighter credit standards, slower wage growth is also holding back entry-level buyers from purchasing their first homes.
Home price gains across the nation continue to ease and come back down to more normal levels turning in their smallest year-over-year gains since November 2012. The August S&P/Case-Shiller 20-city Index rose by 5.6% year-over-year, down from the 6.7% recorded in July on an annual basis. Within the report it showed that annual gains fell in 19 of the 20 cities. David Blitzer, chairman of the Index Committee at S&P said, “The deceleration in home prices continues but despite softer price data, other housing data perked up as figures for housing starts, permits and sales of existing homes were all up.”
Consumer Confidence surged in October due to gains in the jobs sector along with declining gas prices at the pump. The Conference Board reported that its Consumer Confidence Index rose to 94.5 this month, which was well above the 87.2 expected and above the 86.0 recorded in September. The report also revealed that those anticipating more jobs in the months ahead increased to 16.8% from 16%, while expectations for income growth rose to 17.7% from 16.9%.