Market Studies

Consumer spending rose $57.2 billion, 0.1 percent, in August but personal income improved just $15 billion, 0.5 percent, the Bureau of Economic Analysis reported Friday. While the increase in spending matched economist expectations, the increase in incomes was half of what had been forecast.

Home prices saw a slight boost from June to July, according to the latest home price index (HPI) report from Lender Processing Services (LPS). Based on transactions recorded across the country in July, the HPI experienced a 0.2 percent bump up to $204,000. While the boost is a relatively small month-to-month increase, it represents a more significant 4.3 percent increase from the beginning of 2012 and a 1.8 percent increase from July 2011.

After reaching a two-year high in July, the Pending Home Sales Index (PHSI) fell in August to 99.2, the lowest level since April, the National Association of Realtors reported Thursday. Analysts had expected the index to rise to 102.2. The index fell in three of the four Census regions. PHSI data are generally reflected in the report on existing home sales two months out, meaning the August PHSI points to weaker homes sales reported for October.

It's unknown whether or not the Federal Reserve's new stimulus will be able to whip the economy back into shape, but one thing's for sure: It's sent mortgage rates plummeting. Freddie Mac's Primary Mortgage Market Survey showed new record lows in all categories except the 5-year adjustable-rate mortgage (ARM).

Real gross domestic product - the output of goods and services produced by labor and property located in the United States - increased at an annual rate of 1.3 percent in the second quarter of 2012, down sharply from the 1.7 percent growth rate reported one month ago, the Bureau of Economic Analysis reported Thursday. In the first quarter, real GDP increased 2.0 percent.

Home prices have hit their peak for the year, and the price increases seen earlier this year are slowing down, according to the latest data from Radar Logic. The firm's composite price index posted a 1.3 percent price increase from June 19 to July 19. Based on years passed, Radar Logic suggests the gains are partially seasonal, and prices peaked for the year in July. In addition, sales of foreclosed and REO properties reached their lowest level since January 2008, making up just 14.1 percent of all home sales.

After conducting an online survey including 2,570 U.S. adults, MortgageMarvel.com reported 25 percent of Americans said the upcoming presidential election would influence the timing of their decision to buy a home. More specifically, 13 percent said that if they were considering buying a home, they would delay their hold off until after the election because of the uncertainty it creates. Twelve percent said they would take the election into consideration, and it might cause them to postpone on buying a home.

As more and more baby boomers approach their golden years, many are finding themselves having to make a choice they never imagined: Whether or not to walk away from their mortgages. YouWalkAway.com released the results of a client survey, revealing that the looming prospect of a fixed income is driving many older struggling homeowners to strategically default while they still have something left.

Homeownership, long considered part of the American Dream, continues to have mass appeal but with a slightly more practical angle, according to a survey released Tuesday by the Texas Trust Credit Union, one of the largest credit unions in North Texas.

Sales for single-family homes and condominiums in Massachusetts posted yearly increases in August, according to a report from The Warren Group, publisher of Banker & Tradesman.