Mortgage rates can present a challenge to anyone wanting to enter the housing market - or change their housing situation - in 2023. While rates are down from their previous recent highs of around 7%, they are still being a bit stubborn. Several prominent forecasts show them remaining higher for the rest of 2023, while some show the rates steadily falling and entering the upper 5% range by the end of this year or early 2024. Here is what Forbes has to say about it. 

So what does that mean? Are you doomed to not being able to get the home of your dreams or a starter home in which to grow your family? Far from it! When rates are higher, demand is down. Lower demand can mean less competition as you look through listings. Less competition can also mean more negotiating power when getting things such as closing costs covered as part of the purchasing contract. Ever heard of a 2-1 buydown? In this scenario, a lender provides a loan structured around paying 2% lower on your interest rate the first year and then 1% lower the second year. The plan here is to refinance at a lower rate when rates fall again before those 2 years are up. This can be a huge cost savings for your purchase and many Utah home sellers are willing to entertain these types of offers right now while demand is much softer than it was a year ago.

Fear not would-be Utah homebuyers. Realty Team Peterson is here to assist you in navigating the housing market and finding the best home buying options for you. Contact us today with any questions!