This graphic shows how home prices have increased 40% faster than wages over the last 40 years.  Today’s Cotality Price Index reports that home prices are up 0.1% from 30 days ago and 1.7% from 12 months ago. That slower appreciation presents an opportunity for buyers, especially with interest rates being at 10 month lows.  Cotality forecasts home prices nationwide to increase by another 4.2% over the next year.

The inventory of homes for sale has increased by 2.5% since last month and 25% from last year, but is still 11% below what we saw pre-Covid. Again, right now is a great time for home buyers.

BTW: First time homebuyer loans through Utah Housing are at 6.25%, thirty year Government loans are at 5.875% and Conventional 30 year loans are at 6.5%. Fifteen years are at 5.875%. All of these are assuming purchasing a home using a 777 FICO, and customary closing costs–but no points.  I reiterate that paying points will lower the rate favorably, and whether it’s a good idea to do so now depends how long you’ll keep today’s loan considering my free refinance program after six payments have been made. (*The APR is a factor dependent on loan amount, equity in the property, day of the month for closing, and amortization term. Each loan’s APR is different so contact me for your specific scenario.)