OREM, Utah — The country’s average mortgage rate topped 7% for the first time in twenty years. It’s a result of the Federal Reserve’s goal to tame current inflation costs.
Gen-Zers tell FOX 13 News that they hope to be homeowners someday, but are currently losing hope in this market.
“I just think about it all the time, how scary it is,” said Riley Bess. “Just thinking about if I’m going to able to afford things.”
“We’re at a point where you don’t know if it’s going to go higher or if it’s just going to make everything crash,” said Sarah Ferrin.
Finance experts say you’ve got to build that financial foundation now.
Dr. Benjamin Cummings is the faculty director of Utah Valley University’s Master of Financial Planning and Analytics program. He says you need to be mindful of your credit score, work to eliminate debt, and be aware these things do fluctuate.
“Can I afford a mortgage? Am I going to be able to cover the costs for repaying that debt as well as property taxes and homeowners insurance?” he said.
“We’ve had really high-interest rates before, even as high as 14%,” Cummings went on to say. “What we’re seeing now is what was half in the past but people have been able to make it work.”
Dr. Mark Jansen, an assistant professor of finance at the University of Utah, said renting comes with risks rising too.
“Owning a house has another benefit that a lot of people don’t consider, which is it’s essentially a for-savings program,” he said. “When you’re a renter, you’re paying rent every month and at the end of the year you don’t really have much to show for it.”
They advise you to not let the current market deter you completely and instead, start taking those steps toward homeownership regardless of how small they seem.
“I think that’s worth working for, right? Work a little extra hard for that down payment. Try to make that work,” said Jansen.
“Start today. If you’re looking at homeownership, start," said Cummings. "Even if it’s ten or fifteen bucks a month, do something to help towards that future goal."
