Market/Finance News: Consumer confidence lifts

By the resi financial blog team, 25 June 2014

Australian consumer confidence up in June 2014

Consumer confidence lifted in the week ending June 22, which is news that could be well-received by homeowners.

A rise in confidence is often a good signal of a possible lift in spending, which is ideal for stimulating the economy. Strong economic activity and favourable employment prospects are two factors that make purchasing property a more attractive idea, compared to buying or investing in an area that doesn't have the same strong prospects and activity.

Whether homeowners are sitting on a variable home loan or a 5 year fixed mortgage rate, they may wish to pay attention to the latest figures from the ANZ-Roy Morgan Consumer Confidence survey.

Positive figures correlate with housing recovery

Consumer confidence rose to a reading of 105.7 week on week to June 22, marking a 2.4 per cent increase on the previous week. 

Not only did consumer confidence exhibit a weekly improvement, it was also up on its month-long average.

"Consumer confidence has now clawed back some of its earlier weakness, having risen around 6 per cent over the past four weeks, which coincides with the recent recovery in house prices," Roy Morgan explained in a June 24 statement.

That said, the research body did note a warning. 

"However, confidence remains a solid 10 per cent lower than at the end of April, when news flow around the commonwealth budget began, although the generally improved tone in the media since then could mean some further recovery is in prospect," Roy Morgan stated.

Household consumption growth is expected to be "moderate" during the remainder of 2014, then improve in 2015 as recovery in non-mining sectors gains traction, according to ANZ predictions.

The latest news may encourage homeowners to glance over their finances and consider whether a home mortgage refinance could help them get a better interest rate or obtain more favourable loan features.

Categories: Home Loans, Personal Finance