Insights
We are proud to be named a West Coast Regional Leader for 2024
Consumer confidence declines slightly as new home sales fall 8.6%
REAL ECONOMY BLOG | April 26, 2022
Authored by RSM US LLP
Consumer confidence eased in April even as expectations for the next few months improved, the Conference Board reported on Tuesday.
The consumer confidence index was down slightly in April, to 107.3 from 107.6 in March, remaining below the pre-pandemic level.
The index, well known for its correlation with employment, saw the labor differential subcomponent—the difference in the survey between jobs that are plentiful and jobs that are hard to get—drop from the record of 47.1 in March to 44.6 in April. The subcomponent suggests a likely moderation in job gains for the month, which will be released by the Bureau of Labor Statistics next week.
Short-term inflation expectations were one of a few bright spots in the report as expectations for price changes in the next 12 months declined to 7.5% from 7.9% in March.
Buying intentions for automobiles, home and major appliances in the next six months inched up while plans for vacations declined on the month.
New home sales
In a separate report by the Census Bureau, sales of new homes in March fell by 8.6% amid rapidly rising mortgage rates. The average 30-year fixed-rate mortgage advanced to 5.11% last week, according to data from Freddie Mac.
Sales dropped in all four major regions with the largest decline coming from the South, which was down by 47,000 on an annualized rate.
Lower demand coupled with more supply coming online increased inventory to 6.4 months at the current selling pace from 5.6 months in February.
The median price for new homes set a record in March at $436,700, a 21.4% increase from a year ago.
With the Federal Reserve’s aggressive plan for raising interest rates, we expect housing demand to continue to cool down sharply, especially when declines in prices are nowhere in sight.
Let's Talk!
Call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Tuan Nguyen and originally appeared on 2022-04-26.
2022 RSM US LLP. All rights reserved.
https://realeconomy.rsmus.com/consumer-confidence-declines-slightly-as-new-home-sales-fall-8-6/
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Vasquez & Company LLP can assist you, please call +1 213.873.1700.
Subscribe to receive important updates from our Insights and Resources.