Big drops in mortgage rates! 

Highlights:
1) The big kahoona change is a decent drop in mortgage interest rates recently. Home were still selling, often quickly or with multiple offers, with rates in the 7's but having rates drop to the low/mid 6's is very welcome.  
-Mortgage rates have actually increased slightly since the Fed policy rate cut. Bond markets and spreads are fascinating things that fluctuate based on many variables.  
2) Inventory/supply bottomed in March, now up 71% from that low point (normal seasonal trend).
3) Demand high enough to keep absorption rates at roughly 2 to 3 months (a sellers market).
4) Historically the market cools between early summer and the end of the year. If rates continue downward we very well could see the Spring 2025 market kick off early this coming Fall/Winter.
5) Active, but very unique market. What is unique is that some homes go gangbusters and receive multiple offers while others sit on market or don't ultimately sell (results vary widely across neighborhoods and price brackets).

This is such a unique market. The market has picked up this year, 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.

I would argue that there is A LOT of pent up demand in the market from the past two 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. 

Now seeing much needed inventory coming to market (this trend typically continues through November). Consistent small weekly inventory increases since the inventory low in March, now 71% higher than early March. By historic standards there is a low inventory, by recent standards, not so much. There are plenty of homes to choose from, which is a feature of a healthy market. The recent history of seasonal inventory changes is climbing from March through November, and then quickly falling until the following March. Very likely that inventory/supply with reach its 2024 peak in the next 30ish days. Another fun fact, that peak will likely be roughly the same amount of homes available as last year. 

Across the board for the Wasatch Front counties, inventory/supply ranges from two months to three months. By that measure alone it is a 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, 12.1% of the current inventory reduced offering price in the last 7 days and 35.1% of the current inventory reduced offering price in the last 30 days

Expired listings (homes that listed and did not sell) happen in every market. In the last 30 days there were 118 Expireds in Salt Lake County, 116 Expireds in Utah County, and 34 Expireds in Davis County. Even in a sellers market, not every listing sells. 

The headlines these days are all about big swings in mortgage rates. Buyers ARE BUYING homes in the current mortgage environment. 30 year mortgages are now at 6.12% (Freddie Mac). Big decrease recently. These numbers are posted every Thursday. 

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