Housing Starts Decreased in May

Slower expansion plans could weigh on demand for small-business credit, while sustained inflation and labor costs may pressure small-business margins and debt-service capacity. For banks, these dynamics could temper commercial loan demand.

The University of Michigan Consumer Sentiment Index decreased 3.7% in October compared to the month prior, landing at 46.3, according to preliminary results for the month.

While most U.S. families experienced moderate increases in income and net worth in recent years, the share of families experiencing financial stress also grew, the Federal Reserve said in its triennial Survey of Consumer Finances.

Consumer credit increased at a seasonally adjusted annual rate of 1.9% in August, according to the Federal Reserve. Revolving credit decreased at an annual rate of 4.2%, while nonrevolving credit increased at an annual rate of 4.1%.

The rate for a 30-year fixed-rate mortgage was 7.4% this week. The rate for a 15-year fixed-rate mortgage was 6.73%.

Most members of the Federal Open Market Committee believe they may need to raise the target range for the federal funds rate a second time before the end of the year, although that decision will depend on further...