Consumer Confidence Kicks Off High in 2007

U.S. consumer confidence jumps to its highest point since February 2006, which could signal good news for the housing market.
By: Jeannine Aversa: REALTOR® Magazine Online
Consumers are greeting the new year with a lot more confidence than they’ve had in months, which could be good news for the housing market.

The RBC Cash Index, created by the international polling firm Ipsos, showed U.S. consumer confidence at 95.3 in January. That was up from 86.9 in December and was at its highest since February of 2006.

The "expectations" index soared to 83.8 in January from 55 in December. This reading was at its highest in more than two years.

Consumers continue to feel particularly good about the job market. The January reading came in at 126.3, virtually unchanged from December's 126.5, the highest on record.

"A lot of the fears people had about the economy seem to be dissipating — fears about inflation and soaring gas prices. Fears about higher interest rates and the housing bust," says Mark Vitner, an economist at Wachovia Corp.