This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
In future years, the fall of 2011 might well be remembered for being one of the best seasons on record to buy a home.
Mortgage interest rates released Thursday dropped to historic lows for a fourth straight week — 4.01 percent for a 30-year term and 3.28 percent for a 15-year — and are expected to fall even more after the Federal Reserve announced last week it would take further action to try to lower long-term rates.
Those low rates, combined with reduced property values, make now the time for well-positioned purchasers to make their move, experts say.
"The environment right now is ideal for qualified buyers" — namely those who are credit-worthy, said Howard Headlee, president of the Utah Bankers Association.
On Thursday, Zions Bank unveiled its new Homeowners Cafe at 7634 Union Park Ave. in Midvale. Open weekdays from 9 a.m. to 5 p.m., the physical structure has an online counterpart, http://www.thehomeownerscafe.com, aimed at helping people navigate the difficult terrain of mortgage financing.
"This innovative initiative is just another indication of how local banks are stepping up to help people through this housing crisis," Headlee said, "and restore and maintain the American dream of owning a home within reasonable limitations."
Those limitations include having stable employment, good credit scores and cash set aside for down payments and closing costs — three factors that exclude portions of the population that have been hard hit by the recession.
Nevertheless, area real estate agents applaud the improving market.
Kenny Parcell, president of the Utah Association of Realtors, said the current mix of low interest rates and home affordability means that people who qualify can get more for their money.
"You probably won't see these interest rates again in our lifetime," Parcell said. "And the market has come down in price, so the affordability index is remarkable."
With rents on the rise, now is the chance to get more home for a similar monthly cash outlay, Parcell added.
Even so, some hopeful house hunters will still come up short. Lower credit scores equate to higher interest rates, Parcell said, and higher debt loads mean less purchasing power.
Recent Utah association numbers show that year-to-date residential sales rose 2 percent over 2010's numbers. And pending sales — in terms of contracts signed — have increased by 6 percent.
The median price of homes sold in August was $175,000, down 10 percent from the same time last year. And the glut of homes on the market has dropped by 19 percent. Also, properties are selling faster on average — in 88 days rather than 94, the Utah Realtors group reported.
With some still bruised by the housing bubble burst, Zions Bank executive vice president Rob Brough hopes prospective buyers can regain confidence in their local lenders. The new Homeowners Cafe — outfitted with computer kiosks and a children's play area — is an attempt to help build that bridge, he said.
"People find themselves in a variety of situations" — from first-time home buyers to those battling foreclosure or seeking to refinance, Brough said. "Information is critical to that process."
Steve Christenson, loan officer with Axiom Financial — part of publicly traded PHH Home Loans — also raved about the current conditions.
Axiom is a mortgage lender rather than a bank, Christenson said, getting much of its business through word-of-mouth referrals from area real estate agents.
"The rates are phenomenal and it's a good opportunity to purchase or refinance," Christenson said.
twitter: @catmck —
How much house can I buy?
Sample scenario • Monthly income $4,000 after taxes, buyer can put 10 percent down and has other debt payments of $400 per month.
30-year term, 4.01 percent interest • $1,040 monthly payment for a $183,207 home (includes taxes, insurance and mortgage insurance)
15-year term, 3.28 percent interest • $1,040 monthly payment for a $129,927 home (includes taxes, insurance and mortgage insurance)
Source: Conservative estimates calculated by Freddie Mac, tool available at http://www.thehomeownerscafe.com/first