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Atlanta Fed Survey Results

Housing and Consumer Credit Conditions. Atlanta Fed Survey Results. Myriam Quispe-Agnoli Federal Reserve Bank of Atlanta Mississippi Home Corporation Annual Housing Conference Wednesday, February 20, 2013. Disclaimer.

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Atlanta Fed Survey Results

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  1. Housing and Consumer Credit Conditions Atlanta Fed Survey Results MyriamQuispe-Agnoli Federal Reserve Bank of Atlanta Mississippi Home Corporation Annual Housing Conference Wednesday, February 20, 2013

  2. Disclaimer • The views in this presentation do not represent the views of the Federal Reserve Bank of Atlanta nor the Federal Reserve System.

  3. Functions of the Fed: • Monetary Policy • Supervision and regulation of banks • Services to the Payments System • Services to the U.S. Treasury (financial agent) • We are non-profit organization. Federal Reserve System:Board of Governors and 12 Regional Banks and their branches.

  4. Connecting the dots … ECONOMY • Slow economic recovery, slow growth in job creation and income • Results in slow recovery of consumer credit HOUSING RECOVERY • Positive expectations in overall housing markets • Barriers to recovery: credit score/history, foreclosures due people waking away from home or to unemployment and concentration of vacant properties JOBS RECOVERY • Technical and soft skills, and access to available jobs are barriers to employment CONSUMER CREDIT ISSUES • Main reason for seeking credit…pay for food, rent, utilities, gas, etc. • Overall indebtedness declining, perhaps suggesting change in consumer credit behavior

  5. Housing and Real Estate Market Conditions Atlanta Fed Housing Market Study

  6. Home prices in Mississippi have declined at a slower pace compared with the United States as a whole over the past several years. Both Mississippi and the nation recorded small increases in home prices during the third quarter of 2012. Source: Federal Housing Finance Agency, Haver Analytics, Federal Reserve Bank of Atlanta Source: Federal Housing Finance Agency, Haver Analytics

  7. ABOUT THE ATLANTA FED’S HOUSING MARKET STUDY • Conducted in August 2012. • 224 respondents to the poll including Neighborhood Stabilization Program administrators (local governments and nonprofits), HUD approved housing counselors, and real estate brokers. • 23 interviews in six different markets (Birmingham, AL; Mobile, AL; Nashville, TN; Jackson, MS; Jacksonville, FL; Miami Gardens, FL) with non profit organizations, housing developers, financial institutions, local governments, and tax assessment officers. • For this poll we define hard hit areas as the ten neighborhoods most impacted by foreclosures in a jurisdiction.

  8. HOUSE PRICE RECOVERY IS NOT EXPECTED EVERYWHERE: How will prices change in the next year?

  9. COMPARING SOUTHEAST STATES: How will house price change over the next year in your OVERALL jurisdiction?

  10. FROM HISTORIC LOWS, THINGS ARE LOOKING UP: How has home buying interest changed?

  11. HARD HIT AREAS NEARLY MATCH OVERALL MARKET: Has the number of homes for sale changed?

  12. WHAT WE HEARD: Barriers to recovery in hard hit areas Source: Federal Reserve Bank of Atlanta Housing Market Poll, August 2012

  13. Consumer Credit Conditions Atlanta Fed Study on Consumer Credit Access

  14. ABOUT THE ATLANTA FED’S CONSUMER CREDIT STUDY • Conducted in November 2012. • 113 respondents to the poll including consumer credit counselors, financial planners, debt managers and other professionals. • 32 participants attended listening sessions and interviews in Atlanta, GA; Biloxi, MS; Fort Lauderdale, FL; Knoxville and Nashville, TN; New Orleans, LA and Orlando, FL. • NOTE: For this poll we define small dollar loans as loans of $2500 or less, and payable in 90 days or more.

  15. How has consumers' interest in seeking credit changed during the last six months? Source: Atlanta-Fed Access to Consumer Credit Poll, November 2012.

  16. Rank the reasons that your clients have been seeking small dollar loans during the last six months Source: Atlanta-Fed Access to Consumer Poll, November 2012. Note: Respondents could rank some or all choices.

  17. When you think about your clients, how successful have they been in getting approved for requested credit during the last six months? Source: Atlanta-Fed Access to Consumer Poll, November 2012.

  18. Rank the most significant barriers your clients faced when trying to obtain small dollar loans during the last six months Source: Atlanta-Fed Access to Consumer Poll, November 2012. Note: Respondents could rank some or all choices.

  19. Median Credit Scores and Household Median Income Source: FRB-NY Consumer Credit Panel, September 2012 and American Community Survey 2006-2010, U.S. Census Bureau.

  20. Labor Force Participation Atlanta Fed Study of Low-Wage Job Seekers

  21. About the Atlanta Fed Study of Low-Wage Job Seekers • Conducted in May 2012. • To better understand formal and informal labor force participation of low-education/ low-wage individuals in the Southeast. • Employment barriers for individuals with a high school diploma or less who would typically fill low wage jobs. • Interviews (10) and survey (143 respondents, 33% response rate) of employment/ training and social service providers in all states of the 6th District (AL, FL, GA, LA, MS, and TN).

  22. Main barriers to finding employment:Based on your experiences working with low-wage individuals, what are the main barriers to finding employment? Source: Atlanta-Fed Labor Force Participation Survey, May 2012.

  23. Connecting the dots … Final Remarks

  24. Connecting the dots … ECONOMY • Slow economic recovery, slow growth in job creation and income • Results in slow recovery of consumer credit HOUSING RECOVERY • Positive expectations in overall housing markets • Barriers to recovery: credit score/history, foreclosures due people waking away from home or to unemployment and concentration of vacant properties JOBS RECOVERY • Technical and soft skills, and access to available jobs are barriers to employment CONSUMER CREDIT ISSUES • Main reason for seeking credit…pay for food, rent, utilities, gas, etc. • Overall indebtedness declining, perhaps suggesting change in consumer credit behavior

  25. Thank you for your time and attention. Resources To stay informed about these types of issues and to learn more about what is happening in the Southeast subscribe to one of the Atlanta Fed’s publications or podcast series by visiting https://www.frbatlanta.org/webscriber/user/dsp_login.cfm. For additional sources of information, see our Local Economic Analysis Research Network membership at www.frbatlanta.org/rein/learn/map/learn_members.cfm

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