Mortgage Rates are at Historic Lows. Housing Prices may be on the Way Up.

Posted by Sean Matyja on Thursday, January 24th, 2013 at 3:49pm.

Utah Homes for Sale are More Affordable than Ever!

Did you know buying a home for sale in Utah today is more affordable than any time in the last two decades? Homes are actually at a record level of affordability thanks to lower sale prices and historically low mortgage rates. If you’ve been putting off buying a home of your own, now is the time to do it!

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2013 is the Year of Home Affordability for Park City

According to the NAHB/Wells Fargo Housing Opportunity Index, nearly 76% of homes sold during the end of 2011 could have been comfortably affordable for households making the national median income of $64,200. This is the highest recorded home affordability in 20 years. What does this mean for you? Chances are good that you can easily afford most Utah real estate for sale today. And if youre looking to buy a home in Park City Utah, the low mortgage rates really help to make the homes more affordable.

Record-Low Mortgage Rates in Utah

While Utah real estate prices are still relatively low, you’re also more likely to afford a home thanks to record-low mortgage rates. The national average mortgage rate for a 30-year fixed loan is only 3.57%, although Utah mortgage rates are slightly lower. To give you a reference point, twenty years ago these rates were as high as 9.03%!

What does that mean in real world mortgage payments? We have samples below of different rates for the same purchase price of $550,000, which is about the median price for homes in Park City.

 

Purchase Price: $550,000
20% Down Payment: $110,000
Amount Financed: $440,000

Different Monthly Payments (principal & interest) for Various Rates
Interest Rate: 3.57% 4.5% 5.5% 6.5% 7.5% 8.5%
Monthly Payment: $1,993 $2,229 $2,498 $2,781 $3,076 $3,383



 

 

 

 

Wow, the difference in monthly payments is quite a lot as the rate changes. I remember not too long ago (about 10 years back) when I bought my first home in Park City and the rate was about 6.5%. At the time that felt like a great rate! Just look at the difference now from 6.5% to 3.57%. Thats a savings of about $788 a month. Thats a huge difference!


Renting? Buy Utah Real Estate and Save Money

If you’re currently renting your home, did you know that buying a home can actually be cheaper than renting in many areas? After buying a home, you also gain a wealth of tax advantages and begin putting your money to work for you through property value increases and equity you can use. You build your future, instead of building a landlord's future.

Want to know how much home you can afford? Check out our convenient Mortgage Calculator on our website. Its easy to use, and nice to know in advance how much different home purchase prices will end up costing per month.

To learn more about home affordability in Utah and get help finding the home of your dreams, contact us today!

The above charts were supplied by our friends at Veritas Funding. Below is their contact info. We highly recommend them, and if you call or email please let them know we recommended their services!

Jim & Kay Varanakis
Veritas Funding
(801) 560-4578
jvaranakis@vfund.com

Sean Matyja - Realtor® / Associate Broker
Mobile: (435) 901-2158 | Email: sean@enjoyparkcity.com 

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