Are US consumers changing habits and lifestyles?

You all know that the savings rate in the US is up. What you might not know is that it’s at a 10 year high, as illustrated by the chart below from the BEA via the St. Louise Fed:

TThe funny thing is that Americans are also taking out 15 year mortgaes. The theory is that people will get out of debt faster – NY Times: http://www.nytimes.com/2009/05/24/realestate/24mort.html?_r=2&partner=rss&emc=rss

More recently, there has been increased activity in another loan alternative: a fixed-rate mortgage with a 15-year term.

Brokers and mortgage industry executives say that these loans are becoming especially popular among people who want to shed debt more quickly, and in light of the current economic atmosphere, that goal is perhaps more widely applicable than ever.

The number of 15-year mortgages issued in February jumped to 74,497 from 42,178 in January, according to First American CoreLogic, a real estate consulting company in San Francisco. And according to Bloomberg News, $15.9 billion worth of 15-year mortgages were issued in March, more than twice the $7.5 billion issued in February.

So the American consumer is actually saving more and pay debt down faster! The US consumer is taking it to the bank!
Is this good news for the markets? Probably not. People only save and refuse to spend when they are afraid and worried about the future of economic prospects. However, I do think it’s a negative issue thing for the dollar.
Paying

I am taking bets that by this time next year, economists and market participants will be blaming the US consumer for being frugal and for refusing to take on the excess Chinese and European production.
And if the US consumer refuses to consume like yesteryear, then who will fill the gap? I have no idea, but the logic of many economists is that emerging market consumers will take over.
In any case, the bottom line is that the US consumer is changing habits. He will be more frugal, savings oriented and less debt oriented.