According to Zillow, the typical home value in the United States is currently $265,000. This number is projected to increase to $283,000 by October 2021.
In Utah, these numbers are significantly higher. The average Utah home value currently sits at $387,000. By October 2021, that value is forecasted to reach a whopping $415,000. And the market here shows no signs of slowing down.
What does this mean? Well, for those looking to potentially own a home in Utah, it means that buying a home here—and buying one soon—is likely a good financial investment.
Current Interest Rates:
While home prices are rising, the national mortgage interest rates have reached record lows in 2020. As of Monday, November 23, 2020, the average 30-year fixed mortgage rate was 2.95 percent with an APR of 3.26 percent. These numbers reflect the economic uncertainty caused by the coronavirus pandemic, and lower rates like these can also be seen in Utah’s housing market.
Because of this, you could save some serious money long-term if you currently qualify for these lower rates when buying home in Utah. And if you already own a home, now could be a great time to refinance your current mortgage into one with a lower interest rate.
Next Year’s Interest Rates:
As the year draws to a close and we move into 2021, let’s take a look at next year’s forecast for Utah home buyers.
For those looking to refinance or buy a home, they can likely expect mortgage rates to remain generally low throughout the next year. Leading housing agencies are forecasting an average 30-year mortgage rate of 3.03 percent in 2021. However, the economic uncertainty caused by the current coronavirus pandemic has also created uncertainty concerning exactly where mortgage rates will go in 2021.
If a vaccine to the coronavirus were to be successfully developed, it could boost tourism, retail activity, and other parts of the economy, as well as lower unemployment rates. Some experts predict that such economic recovery would spill over into financial markets and raise mortgage rates back up to where they were a year ago. Others predict that rates will remain low for as long as the coronavirus pandemic even minimally affects the economy.
If you’re considering refinancing or buying a Utah home, it may be wise to move quickly. While interest rates are projected to likely remain low next year, we also face an uncertain economic future and raising home prices.
If you’re interested in refinancing a loan or purchasing a home here in Utah, call Graystone Mortgage at 801-893-0844 to speak to one of our experienced mortgage professionals and learn more about what kind of mortgage interest rates may be available for you!