Research has shown that consumer confidence plays a significant role in the overall health of the economy, and the same is true for the mortgage lending industry. While most people will quickly report that they have lost a lot of faith in the mortgage lenders and the ability to successfully maintain home ownership, new studies are beginning to show a slow increase in consumer confidence.
A Slow Recovery
After the mortgage crisis and trouble with unlawful foreclosures, it is no surprise that many people are having a hard time finding confidence in borrowing. Although most economists are predicting a rise in mortgage applications as the rate of foreclosures decrease, consumer reports are far from this level of optimistic.
It is reported that 6 in 10 consumers expect for 2012 to be a period of continued hardship in the lending industry. Surprisingly, many consumers attribute the tight lending standards to be nothing more than the clean up effects of the foreclosure crisis. 11% of those surveyed reported that mortgages would be easier to obtain in 2012 than in years past and 15% said they felt more confident about the lending industry, up from less than 5% last year. Although the increase in consumer confidence is far from earth shattering, there is hope to be gained from the increasing trend in consumer opinions.