The U.S. consumer confidence rose to highest levels in about 15 years. Home prices to recover in October. The Conference Board announced Tuesday that the Consumer Confidence Index rose to 113.7 this month from an upwardly revised 109.4 in November. That topped estimates in a poll conducted by Reuters.
Lynn Franco, director of economic indicators at The Conference Board explained that the confidence surged was entirely because of rising expectations as consumers’ view current conditions, and was led by surging optimism among older Americans.
The report from the Conference Board is the only one that points at increase in consumer confidence. An additional report by the University of Michigan, which was published on December 23rd, found that Americans are more confident in the economy today than in about 13 years.
David Blitzer, managing director and chairman of the index committee at S&P Dow Jones, has commented on the housing market and its relation to the confidence index. “Home prices and the economy are both enjoying robust numbers. However, mortgage interest rates rose in November and are expected to rise further as home prices continue to outpace gains in wages and personal incomes… Affordability trends do not suggest an immediate reversal in home price trends. Nevertheless, home prices cannot rise faster than incomes and inflation indefinitely.” Said Blitzer.