The 30-year fixed-rate mortgage averaged 6.01 percent this week according to Freddie Mac, inching closer to that psychologically important 6 percent threshold. We have not seen rates consistently starting with a five since September 2022, and the anticipation is building among buyers and industry watchers alike.
National Snapshot
The decline in rates is being driven by a combination of factors: cooling inflation data, moderate job growth, and a Federal Reserve that appears content to keep its benchmark rate on hold at 3.5 to 3.75 percent. The bond market has been responding to these signals by pushing yields lower, and mortgage rates have followed.
Meanwhile, tariffs on building materials continue to be a headwind for new construction. The National Association of Home Builders estimates that recent tariff actions — including a 25 percent levy on imported steel and aluminum and a combined 45 percent duty on Canadian softwood lumber — are adding roughly $10,000 to the cost of building a typical new home. That is putting upward pressure on new construction prices and limiting the supply pipeline, which keeps existing home values relatively stable even as demand softens in some markets.
What This Means for Central Utah
Utah home values are up about 1.4 percent over the past year, with the statewide median hovering around $535,000. In our Central Utah communities — Richfield, Salina, Monroe, Manti, and the surrounding areas — prices remain significantly more accessible, and the modest appreciation rate means buyers are not being priced out the way they are along the Wasatch Front.
One encouraging development: nationally, 78 percent of home purchases in recent weeks closed below asking price, up three percentage points from a year ago. That kind of buyer leverage has not been this strong since before the pandemic. We are seeing similar dynamics locally — well-priced homes move quickly, but there is room to negotiate, especially on properties that have been sitting for a few weeks.
The Week Ahead
All eyes are on whether rates will break below 6 percent in the coming days. If they do, expect a bump in refinance applications and renewed interest from buyers who have been waiting for a more favorable rate environment. We will keep you posted.