On May 26, Randal Quarles, the Federal Reserve’s Vice Chair for Supervision, expressed optimism about the country’s economic outlook. Quarles, in a speech at the Brookings Institution stated that the reopening of the economy and government stimulus programs have indicated consumers have an "accumulated stock of savings (that) will support spending for many months to come.

Fitch Ratings reports that the decline in worldwide travel due to the pandemic has extended recovery trajectories for aircraft ABS asset values. The reduction in market values is tied to the surge in parked and out of service passenger aircrafts given the 90% drop in domestic and international air travel in 2020.

The Wall Street Journal reports that stock prices of consumer lenders have “soared” with some lenders up more than 40% year to date. Lenders have benefitted from a recovery in loan demand as consumer spending has regained its footing. Investors remain cautious that the current lending boom could create higher defaults in the long-term, however.

U.S consumer confidence jumped to a 14-month high in April following a strong pickup in March. The Conference Board’s consumer confidence index rose to 121.7 in April from a revised 109.0 in March. The increase was led by a strongly positive assessment of current conditions as more Americans get vaccinated and businesses reopen.

In 2020, mortgage originations for prime borrowers saw the strongest gains, as origination levels for borrowers with weak credit profiles either dropped or saw only modest growth.

Market observers expect bankers to invest in new projects arising from the Biden Administration’s new infrastructure plan. The $2 trillion proposal, announced March 31, will provide numerous ways for banks to make loans to finance projects aimed at improving the aging roads, bridges, and water systems throughout the U.S, as well as the construction of new schools. Furthermore, $213 billion of the proposal is being designated for affordable and sustainable housing.

Recent data from S&P CoreLogic Case-Shiller Home Price Indices and the Federal Housing Finance Agency's (FHFA) House Price Index (HPI) show that U.S home prices soared in January.

The credit card issuer space has been heavily impacted by the pandemic with customer attrition rates falling to record lows. The American Banker writes that across the industry, outstanding balances fell to $820 billion in the fourth quarter of 2020, down from $930 billion a year earlier, as more consumers have paid down their debts and card issuers have become more selective about approving new customers.

The cessation of LIBOR continues within the private-label residential mortgage-backed securities market (RMBS) with the issuance of two new floating rate transactions tethered to the Secured Overnight Financing Rate (SOFR) this month. Rating agency sources say they are the first HELOC and MLI deals to opt for SOFR-benchmarked bonds in the private MBS space.

The Wall Street Journal reports a recent housing boom during the pandemic as more Americans are working from home, noting the differences from the home price appreciation that preceded the 2008 financial crisis.