INCREASED AFFORDABILITY: Mortgage rates way down

Highlights:
1) Increased affordability. 30 year fixed currently at a 3 year low, and close to dropping below 6%
2) Local housing inventory peaked for 2025 in early November, continues to decline, and is now 25% below November levels 

This is such a unique market. The market is active, but behaviors and perceptions haven't changed. The comical way of describing this is that sellers think it is 2021, buyers think it is 2008, and the skilled Realtor's job is to close that gap.

Local housing inventory peaked for 2025 in early November, continues to decline, and is now 25% below November levels. High annual water mark for inventory is typically in early November. Likely to see week over week inventory declines until the flowers come out in the Spring. 

There is so much pent up demand (and supply). Many savvy people accomplishing goals that they may have put off for a long time. I would argue that there is A LOT of pent up demand in the market from the past several years. A huge amount of people that want to make a move but feel like they can't afford it and/or they feel handcuffed by their current advantageous interest rate. A lot of very smart people think that 30 year fixed below 6% is where A LOT of pent up demand (and the supply that comes with it) will come into the market. I tend to agree. 

Across the board for the Wasatch Front counties, inventory/supply ranges from three months and five months. By that measure alone it is a balanced sellers market. Some homes go gangbusters multiple offers (some neighborhood and price brackets have been super competitive with multiple offer situations being common) while others sit on market. In the current inventory we are seeing some price reductions. In Salt Lake County, 322.3% of the current inventory reduced offering price in the last 30 days. Both of those numbers were higher in recent months. Close to half (47.2%) of the homes currently on the market in Salt Lake County reduced price at least once. 

Excellent recent news recently in the current mortgage environment with declining rates. 30 year mortgages are now at 6.15% (Freddie Mac, numbers from last Thursday). This means that the most qualified borrowers can get rates in the 5's. These numbers are posted every Thursday. Mortgage New Daily has 6.01% as of January 12.

If you are having thoughts of moving, it might benefit you to have a casual conversation about what is possible in this market. Pro tip, selling and buying at the same time without moving twice IS POSSIBLE in the current market. Schedule a strategy session HERE