Roller coaster in mortgage rates! Big drop and then giving back those gains, now on a downward trend

Highlights:
1) Mortgage rates have actually increased since the first Fed policy rate cut. Bond markets and spreads are fascinating things that fluctuate based on many variables.  
2) Inventory/supply bottomed in March, peaked recently up 71% from that low point (normal seasonal trend), and the last couple of weeks brought a very small inventory decline.
3) Demand high enough to keep absorption rates at roughly 3 to 4 months (a balanced sellers market).
4) 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. That same argument applies to soon to be active buyers that were holding off until after the election. 

2024's inventory peak was a few weeks ago which is very similar to the seasonal trends of recent years. Now on the decline. 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. 

Across the board for the Wasatch Front counties, inventory/supply ranges from three months to four 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, 10.9% of the current inventory reduced offering price in the last 7 days and 31.2% 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 179 Expireds in Salt Lake County, 115 Expireds in Utah County, and 31 Expireds in Davis County. Even in a sellers market, not every listing sells. Seasonally, expireds tend to increase towards the end of the year as tired sellers pull for the holidays with the plan of giving it another go the following year. 

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 6.79% (Freddie Mac). Big up and down roller coaster 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