Market Report

Rates are the biggest change since our last update. The 30-year fixed mortgage rate averaged 7.28 percent for the week of October 1, 2026, according to Freddie Mac's Primary Mortgage Market Survey, up from 7.03 percent just one week earlier and 6.34 percent this same week a year ago. The 15-year fixed rose to 6.60 percent, compared with 6.42 percent the prior week and 5.55 percent a year ago. At the end of August, the 30-year rate was still sitting at 6.66 percent.

Here is what that means in real dollars. On today's median-priced single family home of $650,000 with 20 percent down, a buyer is financing $520,000 at 7.28 percent, for a monthly principal and interest payment of roughly $3,558. A buyer who purchased last September's median-priced home of $641,343 with the same 20 percent down at 6.34 percent was paying closer to $3,189. That is about $369 more per month, or roughly $4,425 more per year, and about $326 of that monthly difference comes from the rate alone rather than the price.

Much of the recent move traces back to the Federal Reserve, which raised its benchmark rate by a quarter point on September 16 to a range of 3.75 to 4.00 percent, pointing to solid economic growth and inflation that remains above its 2 percent target. Freddie Mac's view is that the broader economy is still supportive of housing even with rates on their current path. Locally, keep in mind that September's closings mostly reflect contracts written in August, before this run-up. The full effect of rates above 7 percent will show up in October and November pending sales, and that is the number I will be watching most closely. In the meantime, deeper inventory gives Salt Lake County buyers more room to negotiate seller credits or rate buydowns that can soften the payment.

For Buyers

Selection is the best it has been in years, with 4,173 homes for sale countywide and condo and townhome supply at 5.6 months. The tradeoff is financing, since a 7.28 percent rate adds roughly $369 a month to a median single family payment compared with last September. Buyers who find the right home have real room to negotiate on price, seller credits or a rate buydown, and that leverage is worth using.

For Sellers

Pricing right from day one matters more now than it has in a long time. Single family supply at 3.7 months still gives sellers a slight edge, and well-priced homes are selling in about 50 days, but with pending sales down 7.3 percent and rates climbing, overpriced listings will sit. Condo and townhome sellers face the deepest competition in the county, so presentation and realistic pricing are essential.

For Investors

Condos and townhomes stand out again this month. Inventory is up 38.3 percent, giving investors more choice and negotiating room, while a 15.0 percent rise in pending sales shows demand from end buyers is holding up. Higher rates do squeeze cash flow, so run your numbers at today's 7.28 percent rather than last year's rates before committing to a purchase.