Happy Memorial Day from all of us at the Donavan & Tyson Team. Before the barbecues get going, here is the number that matters most for anyone thinking about home buying this summer: Freddie Mac's 30-year fixed mortgage rate averaged 6.51% for the week ending May 21, up sharply from 6.36% the week before. The 15-year fixed moved up to 5.85% from 5.71%. That is the biggest one-week jump we have seen this spring, and it came as inflation worries pushed Treasury yields higher. A year ago the 30-year sat at 6.86%, so we are still better off than last Memorial Day, but the easy improvement in mortgage rates has stalled for now.
A New Chair and a Divided Fed
The big story in Washington this week was leadership. Jerome Powell's term as Federal Reserve chair ended on May 15, and Kevin Warsh was sworn in as the 17th chair on Friday, May 22, after a 54-45 Senate confirmation vote, the narrowest margin for a Fed chair in decades. His first policy meeting comes June 16-17, and markets are already trying to read how he will approach an inflation problem that has been fed by energy prices.
We also got the minutes from the April 28-29 meeting on Wednesday. The committee held the federal funds rate at 3.50% to 3.75%, but the vote was 8-4, the most divided Fed decision since 1992. Participants were clearly focused on inflation staying above the 2% target as long as the conflict with Iran keeps global energy prices elevated. For mortgage shoppers, that means the odds of a rate cut this summer have faded, and the bond market is pricing in a Fed that stays put or leans tighter.
Housing Data: Contracts Up, Starts Down
There was good news for buyer demand. The National Association of Realtors reported that pending home sales rose 1.4% in April, the third straight monthly gain and the highest reading since November. Contracts were up 3.2% from a year ago, which tells us buyers are adjusting to rates in the sixes rather than waiting them out.
On the supply side, April housing starts slipped 2.8% to a 1.47 million annual pace. Single-family starts fell 9.0% to 930,000, while multifamily starts jumped 10.3%. Building permits rose 5.8%, so builders are lining up future projects, but the single-family pipeline is thinner than the headline suggests. Fewer new single-family homes nationally keeps pressure on the resale market, which is where most Central Utah transactions happen anyway.
What This Means for Central Utah
The Utah Association of Realtors' April report, current as of May 10, shows the statewide median sales price rose 2.0% to $515,000. Closed sales were up 3.2% from last April, but pending sales fell 10.1% and homes took a median of 65 days to sell, up from 61 a year ago. Statewide inventory sits at 4.2 months of supply. In plain terms, Utah is a balanced market: prices are holding, but buyers have time to think and sellers need to price accurately.
Here in Sevier County and the surrounding valleys, that statewide median is a reminder of how far a dollar goes outside the Wasatch Front. Homes in Richfield, Salina, Monroe, Manti, and Ephraim regularly close well below that figure, and many of our towns still qualify for USDA Rural Development loans with zero down payment. If the 6.51% rate has you doing the math on a monthly payment, ask us about USDA eligibility; it can change the picture for a first-time buyer.
For sellers, Memorial Day marks the start of the peak listing season in Central Utah real estate. With days on market creeping up statewide, the homes that are winning are the ones priced at the market on day one, with clean photos and a realistic list price rather than a hopeful one. If you are thinking about selling Sevier County homes this summer, our team can pull comparable sales for your neighborhood and show you where the market really is.
Enjoy the holiday, and thank you to the families in our communities who have served.