The University of Michigan will release its monthly Consumer Sentiment [1] data for December on Friday, December 22, 2017—reporting that the largest decline in long-term economic consumer sentiment was recorded among those who reflected their concerns about the proposed tax reform.
MReport previously reported [2] the House and Senate Republican's full agreement [3], which indicates some of the changes the tax reform could have on housing, such as the lowering of the mortgage interest deduction to $750,000.
Although the full consumer sentiment data won't be available until the report's release, preliminary results indicate that consumer sentiment has remained quite favorable although it continued to slowly recede in early December from its October cyclical peak.
Perhaps the most important changes in early December are higher income expectations as well as a higher expected inflation rate in 2018. Some of the recent declines was concentrated in the long-term prospects for the economy, while consumers thought current economic conditions have continued to improve. Overall, the data signaled an expected gain of 2.7 percent in real consumption expenditures in 2018.
Here’s what else is in store in The Week Ahead:
- NAHB [4]Housing Market Index, Monday, 10 a.m. EST
- MBA [5]Mortgage Applications Wednesday, 7 a.m. EST
- NAR [6]Existing Home Sales Report, Wednesday
- FHFA House Price Index, [7]Thursday 9 a.m. EST
- Freddie Mac Mortgage Market Survey [8], Thursday