Home Affordability: What’s That?

Listening to the news, it feels like they throw around the ‘A’ word quite a bit…. That ‘A’ word, of course, being affordability! “Homes aren’t affordable anymore…..interest rates affecting affordability… homes are less affordable than ever….” That’s because in the news, fear sells. And the fear of not being able to buy a home can be a scary thing.

The truth, however, is different.

In real estate in Utah right now, homes are MORE affordable than they were in 2007. You might wonder how that can be, with home prices being higher in some areas than they
were then. Part of that is because interest rates have gone down, allowing you to spend more on a home and still keep a lower payment. Our current average percentage rate for home loans is 4.3%!

Affordability is based off of income, purchase price, and interest rate. Incomes have gone up since 2007, especially in Utah Valley, like Lehi, American Fork, etc. Interest rates have gone down. All of this adds up to homes actually being more affordable than you might think!

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