Arkansans reported less mortgage debt than their neighbors in Oklahoma and Missouri, according to the latest consumer sentiment survey from Arvest Bank.
The survey, compiled through 1,200 phone interviews, was conducted in a three-state region in October by the Center for Business & Economic Research in the Sam M. Walton College of Business at the University of Arkansas.
Thirty-one percent of Arkansans reported mortgage debt, lower than the 34 percent in Oklahoma and 36 percent in Missouri.
“When this response is combined with that of higher savings rates and the intent to maintain those savings rates, a reasonable interpretation is that Arkansans remain cautious and conservative about taking on new debt,” Kathy Deck, director of CBER and lead economist on the survey, said in a news release.
Arkansans also had the lowest reported home equity loan debt (4 percent) and student loan debt (12 percent). At the same time, Arkansas had the lowest percentage of respondents with no debt (28 percent), which trailed Oklahoma, at 31 percent, and Missouri, at 34 percent. Thirty percent of Arkansans reported auto loan debt, and 35 percent reported credit card debt.
Respondents were also asked if they anticipated acquiring credit. Across the three-state region, numbers were low. Three percent of respondents, both in Arkansas and Oklahoma, anticipated acquiring mortgage debt, and five percent in each state anticipated acquiring auto loan debt. In home equity loans, 1 percent of Arkansans anticipated acquiring debt, while Missouri and Oklahoma were both at 0 percent. Two percent of respondents, in both Arkansas and Missouri, anticipated acquiring student loan debt, while it was 3 percent in Oklahoma.
When asked if they anticipated difficulty acquiring credit, 6 percent of Arkansans said yes, while 27 percent said no, and 67 percent said they had no plans to acquire credit.
More Arkansans Saving Money
Household savings rates, regardless of income and children, were up across the board in Arkansas.
In families below $75,000, 7.7 percent Arkansans reported saving, compared to 7.1 percent in Missouri and 9.3 percent in Oklahoma.
Arkansas families making more than $75,000 led the way with 21.6 percent saying they saved, compared to 16.2 percent in Missouri and 17.4 percent in Oklahoma.
Overall, 11.9 percent of Arkansas household reported saving, compared to 11.7 percent in Missouri and 12.8 percent in Oklahoma.
When looking at planned household savings rates, 18 percent of Arkansans reported plans to increase savings, which trailed both Missouri (21 percent) and Oklahoma (23 percent). Seventy-one percent of Arkansans said they would keep their savings rates the same, which led Missouri and Oklahoma, both at 70 percent. Meanwhile, 11 percent of Arkansans said they would decrease their savings rates, which led both Missouri (nine percent) and Oklahoma (seven percent).
Respondents were also asked about major household purchases. Thirty-four percent of Arkansans said they made a purchase in the last six months, which trailed Missouri (35 percent) and Oklahoma (38 percent). Arkansas also had the highest rate of respondents who said they did not make a major purchase in the last six months, at 66 percent, which led Missouri (65 percent) and Oklahoma (62 percent).
When asked if they planned to make a major purchase in the next six months, 26 percent of Arkansans said yes, compared to 27 percent in Missouri and 22 percent in Oklahoma.
Savings Up, Mortgage Debt Down Across Region
In the three-state region of Arkansas, Missouri and Oklahoma, 33 percent of respondents in October reported mortgage debt, compared to 37 percent in June.
At the same time, savings rates are up almost across the board. The only section to see a drop off in savings was in families below $75,000. Also, 20 percent of respondents planned to increase savings rates, compared to 17 percent in June, while 8 percent said they had plans to decrease savings, compared to 11 percent in June.
This marks the final release of Arvest Bank’s second survey, which also presents an overall index of consumer optimism of the economy and the consumer opinion on current conditions and expectations. The next survey will be conducted in May.
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