Could the Fed’s interest raise the level of the Utah housing market?

Could the Fed’s interest raise the level of the Utah housing market?

SALT LAKE CITY – Noincrease in the rate of rest announced this week by the Federal Reserve will have a direct impact on the housing market, but could the rise really cool the much too hot housing market in Utah?

Some local experts believe this will help the market stabilize.

“Credit card debt, auto loans, business loans and mortgage rates are all going to be impacted by rising interest rates,” said Robert Spendlove, senior economist at Zions Bank.

The Fed is trying to slow down this real estate inflation by raising interest rates.

Utah could really use that downturn — something that should have happened sooner, according to Spendlove.

“The problem we’ve had with the housing market is that prices have gone up way too quickly,” he said. . It’s just unbearable.”

Sarah Braegger of Real Brokers, LLC said she thinks the people who will feel this the most are first-time home buyers.

“I think the biggest impact will be with first-time home buyers, but they still have a lot of options. Just because rates have gone up doesn’t mean they’ve skyrocketed. We’re still at a very normal and regulated level of interest rate,” she said.

Braegger also tells its salespeople who are also anxious to buy that it’s all about the team you find to help.

“If you can find a strategic lender and agent who can help you understand the value of your capital and what it can do for you as a buyer, there are so many good options out there,” she said. declared.

Higher rates are intended to solve the current market problem – much more demand than supply.

“It’s going to help rebalance the market,” Braegger said.

“What we really need to take into consideration is that this is a healthy market – that leads us to stabilize,” said Emilie Jensen of Intercap Lending.

Jensen said interest rates have risen about 2.5% since December.

“It seems to be high, but only compared to the last two years. What I like to point out is that it’s not just about the interest rate when you buy a house; it’s ‘What’s your monthly payment? What is your family income? What does your overall picture look like to help you enter this house? “Values ​​are higher than they’ve ever been before, so even though interest rates are higher, you’re also getting a lot more for your home right now,” Jensen said.

She said on average they see people staying in a house for three to five years, sometimes even less.

“That’s why we don’t focus on interest rates, because what is a 30-year fixed rate? It’s only good if you’re going to be there for 30 years,” Jensen said.

Spendlove said we can expect to see some rate increases over the next year to control inflation.

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