Consumers Feel Better about Credit, But Voice Concern on Home Loans.

Costa Mesa, CA -- Experian here and the Gallup Organization said that in May, customer sentiment about their credit had slightly improved according to the Experian-Gallup Personal Credit Index. On the other hand, the survey shows customers appear to be more aware of changes and risks associated with the mortgage marketplace.

If the benchmark PCI published two months before was at 100, Experian said, it dropped to 82 the prior month, sliding back upwards to 86 in May.

The slight PCI change "suggests that customers' feelings are stabilizing and perhaps they are experiencing a wait-and-see outlook with regard to changes in the economy," said Ed Ojdana, group president of Experian Interactive. "With short-term interest rates and housing prices continuing to rise, it's understandable if customers are being cautious."

A recent Experian-Gallup survey found that most customers, about 70%, expect housing prices and mortgage rates to rise in the next year, while 24% expect it to remain steady. However, 75% of those who expect changes believe these changes will be modest, with only 25% expecting prices to rise ...