Will Interest Rates Or Home Prices Make A Difference?

Buying a Home In Salt Lake City, Ut
Will Interest Rates Or Home Prices Make A Difference?

One of our clients, a first time homebuyer, asked us the other day whether they should wait for home prices to drop more before buying a home. They were also concerned about interest rates rising and rightly so.  Our answer to them was twofold (don’t you just love literary elegance?) and we thought we would pass this on to you as well.

1. Interest rates are indeed on the rise. They are higher today than the 4.785 that we have been
   

   Townhomes & Condos in Salt Lake

   seeing for the last several months in Salt Lake.  Now this means not only a higher payment on a loan, but can also mean that your buying power is diminished (you can’t qualify for as much to purchase a home).

2. Although prices in Salt Lake City and the surrounding areas may continue to drop slightly during theremainder of the year, the consensus is that our market has basically bottomed out, especially in the first time home buyer price range of under $250,000.  Our market has not suffered the free fall associated with California, Las Vegas, and Arizona, and so has stabilized more quickly.
3. With the incentives offered by the govt in the form of the $8000 first time homebuyers tax credit, the $6500 credit extended tax credit for existing homeowners, grant money, and Utah Housing financing buying a home in Salt Lake holds it’s attraction. Now, this post was written back during the good old days when these were all in place, but since you missed ‘em, we will just tell you that Mortgage Interest is Still Tax deductible, which can turn a 2,000 refund into a $4,000 refund with that deduction, which means you can adjust your take home pay to cover part of your payment. Whoo Hoo!

To illustrate how interest rates more so than a drop in price will affect you in buying a home, we turned to our trusty lender, Lance Sorenson, to provide some valuable information for you.

Look for homes in West Jordan under $250,000

As you can see, interest rates will make more of a difference than a decline in price, so keep that in mind as you make your decision to buy a home.

It could save you lots of money (and I don’t know about you, but I would rather have that extra 100 bucks in My pocket, not the banks).

If you have any questions, be sure to give us a call or shoot us an email!
Til later,
Ciao

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