Money Talk: CEO confidence picking up in 2017

Money Talk is a roundup of financial, investment and real estate news.

PwC SURVEY SAYS CEO CONFIDENCE PICKING UP IN 2017, CONCERNS CENTER AROUND GLOBALIZATION
U.S. CEO confidence has picked up and chief executives around the world are pinning their hopes for growth on the U.S. economy, according to the 2017 Global CEO Survey. At the same time, CEOs face a new policy environment as President Trump prioritizes American jobs and domestic investment. U.S. CEOs identify the kinds of skills they’ll value as automation advances on the workforce, and see the need for a different policy engagement.

PwC’s latest CEO survey, the 20th in the series, asked nearly 1,400 CEO’s from 79 countries about key current trends affecting their respective business. The survey, which was released as part of the wider World Economic Forum 2016 conference in the Swiss city of Davos, highlights increasing concerns around globalization. To learn more, click here.

MORTGAGE PAYMENTS TAKE UP BIGGEST SHARE OF INCOME SINCE 2010, ZILLOW SAYS
With interest rates and home values on the rise, the typical monthly mortgage payment now requires more of the average household income than it has anytime in the previous six years.

Buyers can expect to spend 15.8% of the median household income on housing each month, up from 14.7% a year ago. Home value growth accelerated at the end of 2016, and mortgage rates are rising again after hovering around historical lows for the past few years. The combined effect pushed the share of income households need to pay their mortgage to the highest levels since the second quarter of 2010, according to a Zillow analysis of mortgage and rent affordability.

The monthly mortgage payment for the typical U.S. home was $758 at the end of 2016, an increase of about $68 from 2015. Most of this increase — $47 — can be attributed to home value appreciation, while higher mortgage rates are responsible for the remainder. The Federal Reserve is expected to raise the federal funds rate target two more times this year, which could further increase mortgage rates.

A recent survey of 100 housing experts and economists found that rising mortgage rates and their effect on affordability will be the most significant driver of the 2017 housing market. To learn more, click here.

NFIB SURVEY: HALF OF SMALL BUSINESS OWNERS SAY REGULATIONS ARE A PROBLEM
Roughly half of all small business owners say regulations are a “very serious” or “somewhat serious problem,” according to new research made public today by the National Federation of Independent Business (NFIB). State-specific data is unavailable, but NFIB Arkansas Director Sylvester Smith said the national trends echo what’s happening here. “Our members say regulations can be costly and confusing, and that makes it harder for them to run their businesses,” he said.

According to the survey, 25% of small employers say regulations are a “very serious problem.” Another 23% say regulations are a “somewhat serious problem.” While regulations affect small businesses of every size, firms with 20 to 249 employees seem to be struggling the most. Among that cohort, 38% described regulations as a “very serious problem.” Another 26% said regulations are a “somewhat serious problem.”