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Utah may be at risk for subprime delinquency
http://deseretnews.com/dn/view/0,1249,660203297,00.html
“Nationally, about 14 percent of all loans are considered subprime”
“In Utah, where 26 percent of all mortgages are considered subprime”
A quarter of Utah loans are considered subprime?
These types of loans will be harder to get in the future because of the current subprime meltdown. That is going to take around 20% potential first buyers out of the market. This is going to cause a downward pricing drag across the board. Utah real estate has appreciated greatly in the past year making it almost overvalued to the wage structure of Utah. I expect price stagnation for a few years. Buyers are taking their time. A drop in interest rates might bring them in from the sidelines……..
Thanks for the comment.
Your link to the DN article was right on. The crackdown on subprime will have a major impact on first-time buyers, the only real active buyers in Salt Lake Metro in the last 6 months. The stats for West Valley and West Jordan certainly show we have begun the slowdown. I think we’ll see it continue at least through spring 2008.
Good info. Great way to break it down and see what is happening in the market today.