Key Economic Variables for the Housing Market
and Consumer Finance

Abstract

Employment, income and perceptions of wealth, are considered to be the most influential drivers of consumer behavior and spending. The improvements in employment and wages and reduction in overall consumer debt have supported consumer credit post-crisis. However, not until we started to see a rise in housing values did consumer confidence strongly move away from its recessionary lows. To the extent that these consumer trends remain in place, and barring an unexpected systemic event, we expect consumer spending to grow in earnest over the coming year. This bodes well for consumer ABS supply, in particular credit card ABS supply, going forward.