5 Things a Utah Mortgage Applicant Should Know:

With so much talk in the media of "Housing Bubbles" and "mortgage meltdowns," I thought I'd take a minute to talk about 5 important things Utah mortgage applicants should know.

1. Bubble Trouble? Not in Utah!

It is true that the housing market has slowed in many areas, and even started to decline in some regions. However, what the media fails to mention is that housing markets are extremely localized, and are largely influenced by the local job markets.

According to the most recent stats from the Office of Federal Housing Enterprise Oversight (OFHEO), Utah still ranks number one in home price appreciation between the second quarter of 2006 and the second quarter of 2007 at 15.3%

Furthermore, two of the top three cities for home price appreciation between the second quarter of 2006 and the second quarter of 2007 were Utah cities; Provo-Orem at 18.2%, and Salt Lake City at 16.0%

2. As Jobs Go, So Goes Housing

Again - housing is very localized, and is largely influenced by the job markets. It is no coincidence that aside from being the number one state for home appreciation, the largest over-the-year percentage gains in employment were reported in Utah (+4.8 percent) according to the most recent stats from the Bureau of Labor Statistics (BLS). Also, Utah was one of only four states that boasted an unemployment rate of less than 3% (the national average for unemployment is currently 4.9%)

3. Rates are Still Low!

While the mortgage industry has had its ups-and-downs lately with regard to subprime (mortgage for bad credit) and jumbo loans, the conforming programs have remained relatively unscathed, and in fact have had awesome rate improvements recently!!!

High levels of appreciation + Low interest rates = Opportunity for debt consolidation

4. Opportunity for Bad-Credit Borrowers

Continued appreciation translates into increased home values. Having a lot of equity in your home can be a compensating factor if you have less-than-perfect credit. This may help borrowers to qualify for conforming rates when they otherwise would have only qualified for subprime.

5. Possible Buyer's Market

While hot markets never last forever, Utah has not been prone to extreme ups and downs like some other states. As the housing market begins to cool, it will become a more favorable arena for first-time homebuyers and Utah mortgage applicants - if you know the proper loan programs to pursue!