The Surprising Future of Mortgage Interest Rates in Utah

There are different predictions for different states in the nation for Mortgage Interest Rates in the coming months. 

There are different predictions for different states in the nation for Mortgage Interest Rates in the coming months. Some say that rates will continue to rise, while others believe they will start to fall. No one can be certain what the future holds, but there are a few things that we do know.

Utah is one of the strongest states for Real Estate

Utah County is one of the nation’s strongest and best places for real estate.  We have incredibly low unemployment rates.  We have one of the highest area and median incomes.  Miles Pitcher of Superior Lending estimates that we are about 45,000 homes short in Utah County right now.  

It’s estimated that it will take about five years to catch up with the number of needed homes. He said, “This is one of the reasons I believe that our home values will continue appreciating and utilizing because of that inventory shortage.  We are still seeing a lot of out-of-state buyers coming in [to Utah].”

We know that interest rates are still historically low. Even if rates start to rise, they will likely only go up slowly and steadily over time. This means that now is still a great time to buy a home or refinance your existing mortgage.

Utah County is not the only county with housing shortages, and out-of-state buyers are not the only cause.  We have a significant population of students who come here for college but then stay and buy homes.  

More people are buying homes

We also know that the economy is steady. This means that more people will be looking to buy homes, which could help to keep prices stable or even drive them up.

Miles often hears people concerned about a housing crash or a bubble. “I don’t see that happening at all.  It’s a simple supply and demand game happening right now.  And our supply is still very, very much lower than what our demand is big time.”

Interest rates may or may not improve in the next couple of years. It depends on getting inflation under control and relief in supply chain issues.  As inflation moves up, so do mortgage rates.  But as inflation goes down, rates come back down too. 

It’s a fabulous time to buy a new home so that you can capture that continued appreciation.  Then in the future, you’ll have the opportunity for a Strategic Refinance Plan to get into a lower rate and monthly payments. 

If you want a lender you can trust to help you with an affordable mortgage, I recommend connecting with Miles Pitcher with Superior Lending.

And if you are ready to sell your home and start looking for a new home, I would be thrilled to help!