Mortgage rates experience decline in Eastern Idaho

POCATELLO, Idaho (KIFI/KIDK) - While the pandemic hit the economy pretty hard in 2020, one aspect that has changed is the buying power of the consumer. Mortgage rates are noticeably lower than normal, which has made the current demand for real estate very encouraging.

"Right now, though it really truly is a great time to buy," said Greater Pocatello Association of Realtors President Eli Townsend. "I know that everyone realizes prices are going up, but interest rates are at historic lows, which is making housing more affordable than ever to purchase." 

Based off the 10 year treasury rate issued by the Federal Reserve, current mortgage rates on new purchases are as low as 2.5% in the area for a 30-year loan.

Townsend believes that not only is someone helping himself or any other realty company by purchasing a home, but he or she is also gaining financially in the long run.

"I think people are just excited to know that we are in an area with such a strong market that when they purchase now, they have that confidence knowing that they're going to be able to get their money and make money in their housing purchase for the future," Townsend said. "So when they want to upgrade, they know that they've got that equity there, and will be able to get something a little bit nicer the next time."

With the increase in demand for real estate, Eastern Idaho hopes to attract out-of-town residents, as well as incentivize locals to make investments in their current living situation.

"We have such a strong local market here driven by essential businesses that I really don't foresee even a slow down for our market," Townsend said. "So, now really is the time to get in there and purchase, especially while interest rates are low, because you are locking in your payment for the next thirty years, as opposed to renting, where your landlord can increase your rent every year."

Although inventory is rather low, the purchasing power for a homebuyer has never been higher.