The Bani Group Inc.

Consumer Sentiment Rises and Delinquencies Drop:

Consumer sentiment rebounded solidly early in February after a disappointing showing the previous two months, according to a survey released Friday.

The monthly Thomson Reuters/University of Michigan consumer sentiment index rose to 76.3, up from 73.8 in January. The readings in December and January were weighed down by Americans’ concerns about the potential drag from the so-called "fiscal cliff", which federal lawmakers averted with a last-minute deal.

The consumer sentiment figure was an indication that the economic recovery is intact, though it’s below the readings in the low 80s late last year.  Everyone knows that in the housing market, it is not so much about interest rates or housing prices but instead its about  how potential home buyers feel about the economy.  Strong sentiment about the economy and their job security has always lead to strong housing demand.

In a separate report, The number of homeowners behind on their mortgages has now fallen for four straight quarters to the lowest rate in four years.   At the end of last year, the delinquency rate took its deepest dive since things began improving in 2010, falling 14 percent from a year ago, according to a new report from Transunion. Thirty-seven states and the District of Columbia saw improvements.

This is another strong sign for housing.  With delinquencies continuing to fall, the number of distressed homes that hit the market is greatly reduced and these homeowners are getting back on track with their credit scores which will lead to more qualified buyers hitting the the market this year.