How is Utah trying to help the current housing challenges?

homes in Utah | mortgage rate news

How is Utah trying to help first-time homebuyers?

The Utah state legislature approved a bill to offer assistance to first-time homebuyers. How much, you ask? How does $20,000 sound? There is one catch. The incentive is only offered on new construction. The goal is to encourage first-time homebuyers to buy in Utah, but also giving home builders a reason to continue to add to the state’s housing inventory.

While the project may not solve the current housing shortage, it does make owning a home a little easier for a homebuyer looking to get into their first property. There’s also the possibility that other states could follow Utah’s lead and implement similar programs.

How are the ultra-wealthy looking to invest in real estate?

Did you know that commercial real estate is a market worth $1.5 trillion? It’s also where a lot of the world’s wealthiest are looking to put their money.

Amancio Ortega, Spain’s richest man and found of Zara, added at least 10 properties of commercial real estate last year.

Joe Tsai, Alibaba Group Holding’s co-founder, also added more than a half-dozen five-star hotels to his real estate portfolio.

Overall, wealthy individuals, families, and companies spent a combined $455 billion on commercial real estate in 2022. According to Alex James, Knight Frank’s head of private client advisory, “Private buyers are taking advantage of the ongoing repricing of assets and stronger currency positions. This trend is set to continue with private investors seeking liquid wealth preservation options.”

The ultra-wealthy often know how to spot a good deal, and it appears that commercial real estate may be an area they can invest over the long term.

What’s the latest on the current mortgage rate market?  

While the national average for a 30-year fixed rate mortgage has ticked upwards to start March, there may be light at the end of the tunnel for homebuyers.  According to the team at Mortgage News Daily, there may be weakness in the 10-year treasury yield, a key indicator for mortgage rates.

Also, next week will have the next round of jobs data. Softer reports may indicate that the Fed’s tightening of monetary policy is working and may provide a bit of breathing room in the mortgage market. After that, inflation data is due the following week, and it would be a welcome sign for the mortgage industry to see the next report come in a bit cooler than the last one.

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