Do not hit that snooze button because it may be time to buy a home based on recent news!
Are you feeling better about the economy in 2017? More Americans are feeling positive based on these recent surveys:
- The University of Michigan Consumer Sentiment Index
- National Federation of Independent Businesses’ Small Business Optimism Index
- CNBC All-America Economic Survey
- The Conference Board Consumer Confidence Survey
The increase in consumer confidence should be good news for the real estate market. As more people feel optimistic, the number of people that transition from dreaming to owning a home shifts.
Rising confidence encourages consumer spending and leads to higher economic growth. A big part of this increase in economic growth will be increased home sales.
Some economic indicators are subtle, nuanced or otherwise difficult to grasp straight off the page. Not so for consumer confidence. While economists and investors can debate just how significant this indicator is, most at least grudgingly agree that how consumers feel about the economy (and their personal financial situation) can be a self-fulfilling prophecy.
Broadly speaking, consumer confidence numbers measure the degree of optimism that consumers feel in regards to the economy and their personal financial situations. There are two major indexes for investors to consider – the Consumer Confidence Index and the University of Michigan Consumer Sentiment Index.
This is why I share various consumer confidence indicators in my Real Estate News posts.
Are you are thinking about buying your first home in 2017?
Are you thinking it is time to move to a bigger or nicer home?
You may want to consider buying a home sooner rather than later!
2 things determine your monthly mortgage payment:
- The home’s price
- The interest rate on your mortgage
The bad news is BOTH are both projected to increase this 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.
Goldman Sachs analysts said on Friday they expected U.S. 30-year conventional mortgage rates to rise 150 basis points to about 5.5 percent by 2019, in step with an increase in benchmark Treasury yields and investors demanding higher compensation to own mortgage-backed securities.
How Increases in Mortgage Rates Affects Your Monthly Payments
The Take Away:
If buying a home makes sense for you, I suggest doing it sooner rather than later. The chart above shows how expensive waiting to buy a house can be!
If you have questions about real estate in the Anderson SC area, please do not hesitate to contact us!