Following the epidemic of home foreclosures that led to the current financial crisis, many economists predict that home sales will stay flat over the next year, since the economy has not yet found its feet. Consumers are being very cautious and are slow to make major financial decisions at this time. This means that Salt Lake City mortgages and housing sales will most likely be slow to rebound. During the last major recession in the United States in the 1980's, housing prices plummeted following hyperinflation and the sharp rise in interest rates that soon followed. In an attempt to control runaway inflation, the Federal Reserve decided to raise rates repeatedly, but this move led to a drastic drop in home values. As financing became more and more unattainable, interest in the real estate market and in Salt Lake City mortgage rates trailed off. Is now the best time for you to lock in? If you have a Salt Lake City mortgage, you may be wondering if now is the best time to lock in your interest rate. Generally speaking, locking in your rates for the long term makes good financial sense. Many mortgage companies offer enticing lock-in rates for new homes or for first time buyers. If you are approached with a very competitive rate and you feel confident about your finances, then the option to lock in is a good one. However, if you are feeling somewhat unsure about your decision or if you feel you may find a better rate, it may be best to wait.

A few thoughts in favor of not locking in too soon: If you are willing to be a bit of a risk-taker, holding off may be the best course for you. While it does involve an element of chance, this is not necessarily a bad thing. In the current economic climate, some consumers who are interested in taking out a Salt Lake City mortgage are willing to sit back and see whether the rates increase, decrease or stay the same. If after a few months, the rates seem to be dropping, you will probably feel comfortable floating for a few more months or more. However, if you observe sharp ups and downs, you may have to act quickly to lock in the best possible rate. For people who are still sitting on the fence: If you are still unsure about your Salt Lake City mortgage, it can help to find a financial advisor that you trust. Open communication with your lending company will help you to feel confident and in control of your finances, and a good relationship can help you to get the best possible mortgage rates.