Interest rates

Soaring mortgage interest rates slow Utah home sales

Sandy – Soaring mortgage interest rates are slowing home sales in Utah and across the country. The average 30-year fixed rate mortgage rose to 6.3% today, according to Freddie Mac.

Higher rates disqualify homebuyers from financing. Home sales of all dwelling types in August fell to 1,204, down 27% from sales in August 2021.

“The Federal Reserve’s aggressive rate hikes appear to be having little effect on inflation, but a chilling effect on the housing market,” said Steve Perry, chairman of the Salt Lake Board of Realtors®. “We’re selling about 400 fewer homes per month than the 10-year average.”

Active listings on UtahRealEstate.com topped 10,000 homes, a 150% increase from 4,000 active listings at the same time last year. The number of homes for sale has reached a balanced level.

“The bidding wars are over,” adds Perry. “Offers above asking price and waiver of appraisals have ended. Homebuyers have more choices and options when buying a home.

The median single-family home price in August was $601,000, up 10% from $545,000 in August 2021. Single-family home prices in Salt Lake County peaked at $650,000 in May, but fell 8% in August.

Single-family home prices have increased 63% since the start of the pandemic, from March 2020 to May 2022, when prices rose from $400,000 to over $650,000 in Salt Lake County.

In August, the median number of days a home was on the market was 22, more than three times as many as a year ago.

About the Salt Lake® Council of Realtors

The Salt Lake Board of Realtors® is the voice of Wasatch Front real estate and the #1 source for housing market information. The Salt Lake Board of Realtors® is the principal shareholder of UtahRealEstate.com, one of the leading multiple listings services (MLS) in the United States. Since 1917, the Salt Lake Board of Realtors® has been a leader in promoting home ownership and protecting private property rights. The Salt Lake Board of Realtors® enables its members to better serve the public by providing ongoing education, advocacy and a professional code of ethics.

About UtahRealEstate.com

UtahRealEstate.com is the origin of real estate listings and the official property information platform for real estate professionals in the state of Utah. We proudly serve approximately 96% of all Realtors® in the state of Utah, according to T3 Sixty 2021 Real Estate Almanac. UtahRealEstate.com operates one of the largest Multiple Listing Services (MLS) in the United States.