Mortgage experts still believe it's a good time to buy, but the historically low interest rates we've been seeing for the past few years, now look like they're a thing of the past. Some real estate experts said rates are spiking faster than ever before.
"This last move in the last two months is the sharpest increase that I've seen is 15 years in the mortgage industry," said Dave Monson, Altius Mortgage.
Dave Monson with Altius Mortgage said it's not only happening here in Utah, higher rates are sweeping the country.
For example, the average rate in a 30 year fixed mortgage is now at 4.51%, a two year high. But just more than six months ago that rate was just 3.31%. That may not seem like much of a difference, but look at what happens over 30 years. Take a full mortgage on a $200,000 loan. At that historically low rate just months ago it would've cost you only $877 a month. At the new rate now, it jumps to $1,015 a month, a difference of $138. That adds up quickly, over 30 years that's an additional $49,517 on that mortgage.
What does that mean for homebuyers? If you're in the market, Monson said now is the time to buy.
"I would continue to move forward, I would buy before next spring; just typically you'll see increases in the spring. I would try to beat that," said Monson.
So although the recent spike may be a bit depressing, for now, all the numbers are still in the buyers' favor.
"I would get in while the getting is good," Monson said.
Monson tells Reporter Brian Carlson not only are interest rates going up, the price of homes are going up too. From what he's expecting, house prices in Utah may go up an additional 10% by the end of the year.
Follow Brian Carlson on Twitter: @briancarlsontv