WHAT ARE YOU DOING WITH YOUR GAS MONEY?
When you live in the world of consumer financing such as a mortgage broker you keep your eye on all kinds of data to help guide borrowers in making sound decisions. Generally negative economic news lowers rates and positive news drives them up.
Gas prices have been front and center for a while now. With the economy slogging along experts are looking everywhere for that thing that will give a push to growth. Many have thought lower gas prices would free up money, consumers would spend that money, especially at Christmas, thus giving the economy a boost.
I recall when I was in high school I re-purposed my lunch money for the skating rink.
I just saw some data from December where retail sales were -.9% vs an expected +1%. I've heard projections that an average household is saving well over $600/year with lower gas prices. For those with a long commute it is a more substantial savings.
Maybe the issue here is that consumers are considering it a "savings" choosing to hang onto that cash for a rainy day. Perhaps they don't trust that the prices won't shoot right back up. Maybe it is a sign those who really do drive the economy - namely Main Street, are not that confident in overall growth and stability of the economy. Maybe, just maybe the lower prices are giving consumers just enough breathing room to pay their other obligations easier.
Time will tell what you are doing with your gas money. At least this month's statistics are that you are not spending it.
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