We all know that the US economy went through a very difficult time in the past few years, especially considering the crash in the Housing Market. Almost all other industries were affected negatively. Dropping home values, an increase of unemployment, and property foreclosures overwhelmed everybody. Homeowners along the Wasatch Front wondered if the market was ever going to return.
Fortunately this doom-and-gloom crisis actually lends itself to be the bearer of great news! Over the past couple of years, mortgage interest rates have been at an all-time low. This gave many people in SLC the motivation to refinance or to purchase their properties. Over the past two years, the purchase market has flourished tremendously.
Zillow has listed Salt Lake City as the No. 2 hottest housing market for 2014, while Entrepreneur has ranked Salt Lake City the No.1 hottest housing market for 2014.
According to Zillow, SLC has a significantly lower-than-average unemployment rate, along with a population growth of over 2% in the last two years.
These key statistics imply the following: an increase in population signifies a higher demand for homes. High demand for homes and more people in the workforce has led to an increased interest rate–which is a good thing! High interests rates indicate that the market is healthy. In the overall history of mortgage interest rates, we are still on the lower end of the spectrum.
So to say the least… SALT LAKE CITY IN A GOOD SPOT!
With a rise in this year’s interest rate, this should motivate you to purchase a home while the market is hot, and while rates are still relatively low. Because think about it: interest rates will go up in the future. Most experts say that by 2015, the interest rate of a 30-year fixed rate mortgage will reach 5.5 percent, which is little more than one point higher than what it is at right now.
So, if you are on the fence about whether to buy or not, you should go for it now. Last spring, the interest rate was 3.5 percent–it’s already gone up 1% in just one year. An additional motivational factor is that mortgages will be somewhat easier to get in 2014, than in years past. Mortgage interest rates are most certainly in a good spot right now in 2014!.Home ownership has increased significantly and the people of Salt Lake City are in an excellent place.
Live the American dream and get in the home that suits you!
Reference for the forecast of the interest rates by clicking HERE
Article Authored by the Spencer Stott Lending Team
