Is Consumer Sentiment Improving?

Mortgage purchase applications are also showing some improvement, with the four-week moving average up in three of the last four weeks. - Courtesy of eComparison

After dropping sharply in July, the University of Michigan's consumer sentiment index improved a bit in August's preliminary reading, rising from 67.8 to 69.6. Also, there was a modest rise in the percentage of consumers who believe that now is a good time to buy a house - from 75 percent to 76 percent - a return to the June number and its highest reading since March.

The most common reasons cited for favorable home buying conditions were low prices (63 percent) and low interest rates (44 percent). The glut of foreclosed homes has saturated the housing market, leading to lower prices. As more homes are purchased, you may want to pursue those landscape opportunities.

Meanwhile, mortgage applications have generally been on the rise, with the four-week moving average for applications up in nine of the last 10 weeks.

- Courtesy of NAHB