Experian: Fifty Percent of Consumers Are Uncomfortable Making a Major Purchase in the Next Three Months
According to the latest Experian-Gallup Personal Credit Index consumers don't plan on making any significant purchases (homes, cars, plasma TV's, granite countertops, etc...) any time soon. What's interesting to note about this survey is that consumer credit perceptions have been negatively impacted by the subprime mortgage fallout along with rising foreclosures, and the recent spike in long-term interest rates.
From Experian: “Key results on consumer attitudes toward the mortgage market include:
* 58 percent believe the problems in the subprime mortgage market will affect the overall mortgage market, while 24 percent feel the problems will be contained.
* 61 percent of consumers who are very familiar with subprime mortgage loans believe the problems in the subprime mortgage market will spill over into the overall mortgage market.
* 55 percent believe the federal government should pass new legislation helping subprime borrowers keep their homes and avoid foreclosure.
Overall, about 52 percent of consumers surveyed feel the average price of homes in their area will increase over the next year, while 29 percent believe prices will remain about the same. Eighteen percent of consumers expect that prices in their area will decrease.
Among homeowners, 50 percent believe that average prices will increase, while 32 percent feel they will stay about the same.” read full article >>