Housing market dampens consumer spending

The Deloitte Research Leading Index fell to 2.67% this month, prompting a forecast of weak spending in the coming weeks.

“The housing market is beginning to have a substantial impact on consumer spending,” said Carl Steidtmann, author of the monthly index.

An abundance of houses on the market has caused home prices to fall, much to the dismay of sellers. Meanwhile, mortgage rates are rising and refinancing money is drying up. More of consumers’ money is going toward mortgage payments, Steidtmann said, and less money is left over for discretionary spending.

-- Sarah