Salt Lake Mortgage Rates Increase, House Payments Up!
Mortgage rates soared again Monday, tacking on a half-percent to Salt Lake House payments in one day for the second time in under a week.
That would mean an increase of $62 on a $200,000 West Jordan home loan's monthly payment, or $744 per year.
For Salt Lake homes buyers recently under contract, it's a gut-wrenching time to be shopping for a home loan. Morning mortgage rates have been typically gone by early-afternoon and -- in some cases -- lenders have changed rates five times in one-day span.
The reasons for surge in rates are varied, but each is related to the idea that the economic recession may be nearing its end.
Each of these points bodes well for the economy and pushes Wall Street investors towards more risky investments. As a result, "safe" investments get sold -- including mortgage-backed bonds, the basis for conforming mortgage rates.
For as long as the future of the economy remains in question, expect mortgage rates to remain volatile. We won't get half-point rate swings or five pricings in a day every day, but both are becoming more common.
Be careful when shopping for a mortgage in Utah -- the rate you're quoted may not last long.
If you have been thinking of buying a new Salt Lake Home, you had better hurry. Interest rates on that dream home could rise quickly.
To start the home search, stop by our website @ Salt Lake Homes for Sale and see prices, maps, photos and information about buying homes all over the State of Utah.