Mortgage rates in Utah crossed 7% on Friday, Sept. 11, for the first time in more than a year. According to reports, the 30-year fixed-rate mortgage index reached 7.08% by midday Friday, while Zillow data showed an average of 7.104%.
The increase has intensified affordability challenges in the Lehi area. A Ziffy.ai analysis reported by the Lehi Free Press in July noted that in a metro where the median home price is $572,450 and the median household income is $101,014, rates would need to fall to 2.3% to make a home affordable on that income.
U.S. News reported that the recent surge was driven by rising oil prices and a bond-market selloff tied to a U.S. Treasury Department buyback program. CNBC stated that rate increases since the start of the conflict between the U.S. and Israel against Iran in late February have added an estimated $244 to the monthly payment on a $433,000 home.
Steve Waldrip, the governor's senior adviser for housing strategy, stated at a recent Kem C. Gardner Policy Institute event that approximately 75% of Utah's housing market is locked up. He noted that homeowners who refinanced or bought at rates less than half of current levels are unlikely to give up their mortgages and expressed that he does not anticipate a return to a 3% market soon.
A Gardner Institute housing report released Sept. 9 found that Utah's median sale price across all housing types reached $520,000 in the first quarter of 2026. The report estimated an average monthly mortgage payment of $3,669, which puts homeownership beyond what 91% of Utah renters can afford.
Dejan Eskic, a senior research fellow at the Gardner Institute and co-author of the report, warned against waiting for rates to drop, noting there have only been two instances in housing history where waiting was considered worthwhile: the 1980s and after the 2008 financial crisis.
Jeremy Holmgren, senior vice president of Zions Bank Mortgage, told the Deseret News on Sept. 4 that a 7% rate is not dramatically different from 6.75%. He suggested buyers stay in the market due to growing inventory in Utah that could provide leverage with sellers.
Statewide, 74% of Utahns are priced out of purchasing a median-priced home. As Utah's population is projected to exceed 4 million by 2035, the Gardner Institute estimates the state will require roughly 280,000 additional housing units.
