HOUSING + HOMELESSNESS

Mortgage rates back below 7%, how does it affect Utah buyers?

Dec 15, 2023, 3:00 PM | Updated: May 30, 2024, 9:43 am

new housing being built -- mortgage rates in utah are looking better...

Town homes and apartment construction in the Herriman area on Tuesday, Nov. 14, 2023. (Scott G Winterton/Deseret News)

(Scott G Winterton/Deseret News)

SALT LAKE CITY — Mortgage rates are finally back below 7% for the first time since August. The news comes as the Federal Reserve kept interest rates steady on Wednesday. Many experts believe they could begin cutting rates in 2024.

Senior Research Fellow at the Kem C. Gardner Policy Institute Dejan Eskic told KSL NewsRadio that overall, this is good news for the local market.

Eskic said it would save people roughly $300 a month in payments compared to just a couple weeks ago.

“That’s a big difference-maker for people,” Eskic said. “Being able to afford a little bit more and a $300 savings per month…it’s huge.”

Utah has suffered from a large housing shortage for quite some time. Add that to tens of thousands of people moving to the state every year and demand for homes in the Beehive State has only grown. So has the price to buy them.

Eskic said as of Friday, the median price to buy a home in Utah was roughly $500,000.

And while the lower mortgage rates are good for some buyers in the short-term, Eskic believes they will in turn drive home prices up over time.

As demand goes up, so do prices.

What’s the solution?

Utah leaders, including Gov. Spencer Cox, have been hard at work trying to build more homes in the state. Lawmakers also created a loan program to help get first-time buyers in the door.

Eskic said the state does need to build more homes in general, but he believes we need to focus on building various types of housing.

“We have this culture of big families… if we want to keep that, we have to house our kids,” Eskic said. “I don’t know how you achieve that with having quarter-acre lots.”

Related:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Housing + Homelessness

A Box Elder County Commission candidate made comments while talking about a construction ban that s...

Debbie Dujanovic

Dujanovic: Box Elder Commission candidate must stop spinning his racist comment

A recording of a planning commissioner, running for Box Elder County Commissioner, has racist comments he should apologize for.

2 days ago

The Ogden City sign pictured on Tuesday, Oct. 17, 2023....

Allessandra Harris Gurr

Ogden City proposing ordinance to increase single-family homes

This ordinance would reportedly create more single-family homes. The Ogden City Planning Manager said it also would increase accessibility.

4 days ago

The exterior of the historic Northwest Pipeline Building in Salt Lake City is pictured on Tuesday. ...

Carter Williams, KSL.com

Salt Lake City plans to flip historic former public safety building into new housing

The estimated $150- to $165-million project will offer 244 mixed-income units, more than half of which will be "sized to accommodate families."

9 days ago

New homes in the Cold Spring Ranch community are pictured in Lehi on March 28. Utah home prices are...

Tammy Kikuchi

Home prices still rising in the Beehive State

Utah home prices are showing no signs of slowing, with an almost 6% increase since 2023. Should these numbers scare you?

11 days ago

Governor Spencer Cox poses with first lady Abby Cox, former child Natalie Clark, and Utah Foster Ca...

Eric Cabrera

Gov. Cox, Utah Foster Care calls on Utah to step up and become foster parents

Utah is facing its lowest number of foster families in 25 years. So Gov. Cox issued a call to action.

17 days ago

New homes in the Cold Spring Ranch community are pictured in Lehi on March 28. Utah home prices are...

Carter Williams, KSL.com

Utah leads nation in housing unit growth, so why did privately owned units drop?

Housing unit growth is Utah is the highest in the United States, however private home ownership has plummeted.

22 days ago

Sponsored Articles

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...

Comcast

Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mortgage rates back below 7%, how does it affect Utah buyers?