The New York Federal Reserve's year-end Survey of Consumer Expectations showed little change between November and December, though there was a small pullback in Americans' financial expectations. According to results released Monday by the New York Fed, consumers' median earnings growth expectations were 2 and a half percent for the year ahead in December. That marks a slight step back from November's reading of 2.7 percent.
Meanwhile, job market confidence improved. According to the New York Fed, consumers last month said the average perceived probability of losing their job was 14.5 percent, down nearly a percentage point from November and the lowest level since July 2013. Meanwhile, the average probability of bouncing back into a job within three months of being fired was 51 percent, also up by close to a percentage point.
HUD has issued an update regarding its recently announced cut in FHA premiums and its effect on loans currently in process. In a mortgagee letter issued Friday, HUD announced that the reduction in annual premiums will affect mortgages with case numbers assigned on or after January 26th. To make sure borrowers with FHA applications currently in process don't get left out, the FHA says it will temporarily approve cancellation requests for active case numbers starting January 15th and through the end of the day February 26th. More information can be found on HUD's website.