Evidence shows that Americans are regaining faith in the U.S. economy. The following surveys and indexes have each shown a sizable jump in consumer confidence:

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

When the country believes in a prosperous future, it typically means good news for the housing market. Consumers resume their dreams about the home their family has always wanted. Those who are more serious about these dreams will begin plans for making them a reality.

If you are thinking to your dream home a reality, it may be better to do it earlier in the year rather 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 have already begun to do so). It's been proposed that interest rates may increase quite dramatically. The following are some end of the year predictions:

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.”

HSH.com:

“We think that conforming 30-year fixed rates probably make it into the4.625 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.”


Therefore, if you are considering making a move to your dream home, doing it sooner rather than later makes the most sense for you and your family.