More Salt Lake homeowners are mortgage-free
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29.2% of Salt Lake metro homes were owned outright in 2022, up from 25.8% in 2017, according to the latest census data.
- That's compared to nearly 40% nationally, the highest share since 2005, Axios' Sami Sparber reports.
Why it matters: This means some people aren't worrying about high mortgage rates.
- Many free-and-clear homeowners are baby boomers who refinanced their mortgages when rates were lower, Bloomberg reports.
Yes, but: That could make some seniors and empty-nesters less likely to downsize, a move that would free up some housing stock for buyers.
- In Utah, that's compounded by an exceptionally large number of homeowners who bought when interest rates were low and are unlikely to move now that rates are high.
Between the lines: There can be a psychological perk to paying off a loan early, but according to some personal finance experts, it could be smarter to invest that money instead.
- "If people derive some intrinsic happiness out of paying off their mortgage because it reduces their stress, then that has value," Michael Roberts, a Wharton School finance professor, tells Bloomberg.
What we're watching: Mortgage-rate humble brags. Major forecasts predict rates will dip in 2024, but those 3%ers likely got the interest rate of a lifetime.
Go deeper: Pending home sales neared record low in October as mortgages approached 8%