US Consumer Confidence Hits a Seven-Month Low

Consumer confidence in the US just hit a seven-month low, with optimism about the future—especially around income, business, and jobs—slipping noticeably. Interestingly, while the present-conditions index climbed by about 7 points to 121, the expectations gauge dropped by 6 points to 68, a figure that often signals recession risk. Early in Q3, employers trimmed 23,000 jobs, and unemployment nudged up to around 4%. Notably, this rise came mostly from people stepping out of the labor force, rather than more job opportunities. Even as confidence softens, homebuying expectations have only eased slightly and are still on the rise—likely because many, like my clients here in Phoenix, see real estate as a steady way to build wealth even when other markets feel uncertain. About 61% still expect interest rates to increase, and with policymakers holding rates steady and little sign of near-term relief, borrowing costs are poised to remain elevated through the end of the year. Navigating these shifts can be challenging, but with a thoughtful approach, real estate remains a powerful tool for securing long-term financial stability.