Consumers are saving more and being picky about how they spend their money. While a higher savings rate means less spending in the near term, this is a positive sign that households are taking control of their finances to build some cushion that can be used to pay down debt and/or support future spending.

Consumer confidence has softened and the job market remains stationary; but overall, financial conditions have improved, with a rebounding stock market. Mortgage rates also set record lows this month. Coupled with lowered home prices and a robust rental market, investors are finding their way back for cash-flow opportunities.

As job growth and foreclosures continue to stay on top of officials’ agenda, regulatory measures addressing the financial systems are being taken to protect consumers from controversial and, in some cases, illegal lending practices. In the meantime, the federal government continues to lend support to the economy.