Consumer Sentiment About Household Finances and Credit Availability is Mixed

The Federal Reserve Bank of New York released its Survey of Consumer Expectations earlier this week. While consumers are more optimistic than pessimistic about their financial situations a year from now, the data shows that many consumers feel that it will become more difficult to obtain credit. Hover your mouse and click on the data on the interactive chart below to see more details.

•  Household financial situation: Compared to a year ago, 35% of consumers feel their financial situation has worsened while 21% feel they are better off. Looking forward, 25% of consumers believe their household financial situation will be worse off a year from now, while 30% feel that they will be better off. These levels are similar to sentiment recorded last month.
• Credit availability: Compared to a year ago, 48% of consumers feel that it is hard to obtain credit; only 10% feel that is easier. Looking forward, 42% of consumers feel it will be more difficult to obtain credit a year from now, while 15% feel that it will be easier. These levels are similar to sentiment recorded last month.
• In context: Most Americans don’t believe they can afford to buy a house. A recent survey by Morning Consult found that nearly 55% of adults don’t think they could afford a 20% down payment on a home and nearly 50% don’t think they could afford the monthly mortgage payments with their current spending habits (45% thought they couldn’t afford the monthly payments even if they did change their habits).