The Current Market and Home Buying
/Dan Hubrich of Mountain View Mortgage is back and this month he’s talking about the current market and how it affects home buying.
As we near the end of a historic year, I wanted to share some thoughts about what is happening in the financial markets. The stock market is at record highs right now and rates are still at record lows! There was a lot of volatility around the election but things have quieted down now and rates have been pretty flat for the most part. It’s crazy to me to think that sub 3% mortgage rates are normal now! I remember when I got into this business years ago, that anything under 6% sounded amazing! It’s proof that all things are relative! It’s also proof that things never remain at a constant. At the end of the day, rates don’t have a whole lot lower that they can go but there is an unlimited upside that they can go. Will that happen anytime soon? Probably not. However, I would also caution you not to let these crazy low rates become the normal way of thinking either. I see this as a gift from heaven that most definitely has a shelf life on it. The other factor that is hard at work right now is supply and demand. Available inventory in Utah is also at record lows which is pushing prices higher. Luckily with lower rates, the higher prices haven’t affected people’s buying power much, BUT with a spike in rates that could all change. So the bottom line is that even with higher real estate prices it’s still one of the best times ever to purchase a home and of course refinancing has never been better. Reach out to Melissa or myself for more information on how we can help you achieve your financial goals! Happy Holidays everyone!