US Consumer Confidence Hits Lowest Level Since 2014

US consumer confidence dropped to 81.9 in September, marking the lowest level since April 2014. According to The Conference Board, this decline stems from household anxiety regarding business conditions and the labor market, fueled by rising interest rates and the economic impact of the US-Israeli war, which has pushed up food and energy prices.

To combat inflation, the Federal Reserve System raised the benchmark interest rate to a range of 3.75%-4.00%, the first increase in three years. This monetary tightening coincides with a cooling job market; the Bureau of Labor Statistics reported that job openings fell by 256,000 in August to 7.079 million, indicating tepid hiring activity.

Housing affordability continues to decline as the Federal Housing Finance Agency reported a 0.3% increase in single-family house prices in July. These price gains are compounded by high borrowing costs, with 30-year fixed-rate mortgages averaging 7.03% last week.