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    Is This the Year to Move Up to Your Dream Home? If So, Do it Early

    It appears that Americans are regaining faith in the U.S. economy. The following indexes have each shown a dramatic jump in consumer confidence in their latest surveys:

    1. The University of Michigan Consumer Sentiment Index
    2. National Federation of Independent Businesses’ Small Business Optimism Index
    3. CNBC All-America Economic Survey
    4. The Conference Board Consumer Confidence Survey

    It usually means good news for the housing market when the country sees an optimistic future. People begin to dream again about the home their family has always wanted, and some make plans to finally make that dream come true.

    If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:

    “We think that conforming 30-year fixed rates probably make it into the 4.625 percent to 4.75 percent range at some point during 2017 as a peak.”

    Svenja Gudell, Zillow’s Chief Economist:

    “I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent.”

    Mark Fleming, the Chief Economist at First American:

    “[I see] mortgage rates getting much closer to 5 percent at the end of next year.”

    Lawrence Yun, NAR Chief Economist:

    “By this time next year, expect the 30-year fixed rate to likely be in the 4.5 percent to 5 percent range.”

    Bottom Line

    If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.

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    Danny Cheung

    I spent almost thirty (30) years with the Department of Defense in hardware/software design, development, operations, maintenance, and program manager before joining the Group in a full-time capacity. I am thrilled to put my years of experience as an Electronics Engineer and Program Manager to assist and lead our Real Estate Group to the next level. I am committed to establishing the tools and resources necessary for our team members to work more seamlessly and effectively, thus ensuring our clients' satisfaction. My wife and I have two daughters and a dog (he’s more like our son). I enjoy traveling and watching sports, especially football…Go Skins!

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