A new article from Diana Olick at MSNBC was just released highlighting the increase in mortgage rates and the potential effect it could have on price cuts in the national real estate market. Much of what she provides in this article does apply to parts of our Utah real estate market so we thought we’d like to share some of the details with you.
- The average rate on the 30-year fixed sat just below 4 percent a year ago, after dropping below 3.5 percent in 2016. It just crossed the 5 percent mark, according to Mortgage News Daily.
- While more people think now is a good time to buy a home, according to a monthly sentiment survey from Fannie Mae, more people also think mortgage rates will go up.
- Higher rates could throw cold water on those high home prices, as sellers see demand fall off and their houses sit on the market longer.
One paragraph of note is the following: “The stronger economy has definitely fueled demand for housing, but the last few years of near record-low supply pushed prices too high too fast. So while more consumers may want to become homeowners, more and more simply can’t afford it.”
Luckily for Salt Lake County, the new construction and development of new areas is allowing for an increase in the supply for homes. If you are looking for a home on your own and can’t find the one you want in your price range, give us a call and let us help you. They’re out there! But they certainly need a professional to find them.
Credit: MSNBC Realty Check