While Consumer Sentiment has inched up slightly, Consumer Credit tells a different story. Credit usage has continued to rise, suggesting increased financial strain on consumers amid ongoing economic pressures such as inflation. Although another rate cut is still expected, its likelihood remains uncertain under the current administration.

Consumer Sentiment
Consumer sentiment was essentially unchanged, inching up less than one index point from last month and sitting about 20% below January 2025. Sentiment surged for consumers with the largest stock portfolios, while it stagnated and remained at dismal levels for consumers without stock holdings.

Consumer Credit
In 2025, consumer credit increased 2.4 percent, with revolving and nonrevolving credit increasing 3.4 percent and 2.0 percent, respectively. During the fourth quarter, consumer credit increased at a seasonally adjusted annual rate of 3.0 percent, while in December it increased at a seasonally adjusted annual rate of 5.7 percent.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.01%, with the current rate at 5.50%
• 30-Year FRM rates saw an increase of 0.01%, with the current rate at 6.11%

MND Rate Index

• 30-Year FHA rates saw a decrease of -0.04%, with current rates at 5.75%
• 30-Year VA rates saw a decrease of -0.04%, with current rates at 5.77%

Jobless Claims
Initial Claims were reported to be 231,000 compared to the expected claims of 212,000. The prior week landed at 209,000.

What’s Ahead
GDP Estimates and PCE Index Inflation Data is set to release next week as the largest data releases.