Consumer Expectations Improving

by Rob Stoll, CFP®, CFA Financial Advisor & Chief Financial Officer / May 27, 2020

This week we received survey data on the state of consumer confidence in the U.S. The punchline: Consumers are feeling a bit better. The Conference Board publishes a monthly survey of consumer confidence. As you might imagine, confidence slumped mightily in March and April on the back of the COVID-19 scare. But May’s survey points to a healing in consumer expectations. While the level of confidence is still down from where it was in January, consumer expectations of the future are getting noticeably better.

Consumer Expectations Improving fee only financial advisor deer park Barrington chicago

Probably the biggest surprise to us has been the sharp rebound in home purchases. The Mortgage Bankers Association (MBA) index of mortgage applications to buy a home – which excludes refinancing – hit a multi-year high this week!

Mortgage Applications for Purchase fee only financial advisor deer park Barrington chicago

The combination of record-low mortgage rates and a relatively strong consumer outlook has led the rebound.

This is surprising in an environment where the unemployment rate is heading towards 20%. But it highlights the idea that these job losses will be temporary and come back quickly once the economy reopens.

We’re witnessing one of the most remarkable economic periods in our country’s history. In less than 3 months’ time, we’ve gone from a white-hot economy to one near depression. And if these indicators hold true, the economy might just pick up where it left off!

Wondering how this affects your future finances? Schedule a call with Financial Design Studio, financial advisors in Deer Park, to discuss your portfolio today.

Ready to take the next step?

Schedule a quick call with our financial advisors.

Recommended Reading

charitable giving


Thanksgiving is a season to be grateful, but we think it's also the season to GIVE! In this article we discuss types of charitable giving!

Investing in the 1970s

Inflation and higher interest rates are here. It's been decades since investors have had to navigate these two headwinds. To invest successfully in the next decade, we think investors need to familiarize themselves with what investing in the 1970s was like. What worked? What didn't?

Rob Stoll, CFP®, CFA Financial Advisor & Chief Financial Officer

Rob has over 20 years of experience in the financial services industry. Prior to joining Financial Design Studio in Deer Park, he spent nearly 20 years as an investment analyst serving large institutional clients, such as pension funds and endowments. He had also started his own financial planning firm in Barrington which was eventually merged into FDS.