Mortgage rates jumped to 6.71% during the week of Friday, Sept. 4, reaching their highest level in more than a year. In the Lehi area, where the median home in the Provo-Orem-Lehi metro costs $572,450, the squeeze on buyers is increasing.
Jeremy Holmgren, senior vice president of Zions Bank Mortgage, told the Deseret News that buyers who remain engaged could benefit from increased leverage with sellers as Utah's inventory grows. He stated that this is a time to be strategic rather than to panic or leave the market.
Sellers are already adjusting prices, according to local agents. Salt Lake Board of Realtors President Scott Colemere said in August that homes were spending between 45 and 47 days on the market. He noted that in 2026, he had only one transaction where a buyer paid full price, with all other transactions being discounted.
Utah Association of Realtors President-elect Aaron Drussel told the Deseret News on Aug. 11 that sellers who sought premiums during the spring were adjusting expectations. He cited a client who lost a Lehi home despite a competitive offer priced approximately $25,000 above recent comparable sales; the home ultimately sold for less than its roughly $600,000 asking price.
The rise in mortgage costs is attributed to a global sell-off of government bonds, according to a report by the Deseret News citing The Wall Street Journal. Other contributing factors include the national debt reaching $40 trillion, concerns regarding a possible Federal Reserve rate hike, and the ongoing U.S.-Israel war against Iran.
Utah County's median home price reached approximately $548,000 in May, representing a 7% increase from the previous year. Additionally, more than 61% of Utah mortgage holders carry an interest rate below 4%, according to a University of Utah Kem C. Gardner Policy Institute outlook reported by the Lehi Free Press. This creates a lock-in effect that prevents many existing homeowners from listing their properties.
Mortgage Bankers Association President and CEO Bob Broeksmit stated in a Sept. 3 statement that rates are expected to remain near 6.7% for the foreseeable future. The Federal Reserve's next policy meeting is scheduled for Sept. 15–16, where a rate hike could potentially push mortgage costs higher.
