What Buyers Say They Need Most — And How the Market Is Changing

If you’ve been thinking about buying a home but feel like affordability is holding you back, you’re not alone. A recent survey from Bank of America found that today’s buyers are focused on two main things: lower home prices and lower mortgage rates. In fact, 63% of buyers say they want prices to ease, while 50% are hoping for lower interest rates.

These numbers make it clear: buyers are watching both prices and rates closely. While affordability challenges haven’t disappeared, the housing market is beginning to adjust in ways that could make a real difference. Let’s break it down—starting with home prices.

Home Prices Are Moderating

Remember the wild days of 2020 and 2021, when Utah home prices were climbing by double digits? At one point, values jumped by more than 20% in just a single year. That kind of growth priced many families out and left first-time buyers feeling hopeless.

Today, the pace looks very different. Nationally, home prices are expected to grow at a much more manageable 1–3% this year. In Utah, the average home value now sits around $506,000–$540,000, putting the state among the ten most expensive housing markets in the country. Salt Lake County’s median home price is over $620,000, while Utah County hovers closer to the mid-$500,000s.

What’s changing isn’t so much the sticker price as the speed of growth. Prices are no longer racing ahead — they’re stabilizing. In fact, some sellers are now offering concessions like $10,000–$15,000 toward closing costs or mortgage rate buy-downs to attract buyers. That’s a big shift from the bidding wars we saw not long ago.

For buyers, this means you can approach the market with more confidence and realistic expectations. For sellers, it means pricing strategy and presentation matter more than ever.

Mortgage Rates: Relief, But Not a Reset

Current Rates & Recent Movement

• The U.S. 30-year fixed mortgage rate recently dropped to 6.58%, its lowest point in nearly 10 months.

• According to the Mortgage Bankers Association, in late September 2025, the average 30-year fixed rate was ~6.46% (for conforming loans). 

• A Fed rate cut in 2025 helped push mortgage rates lower; by late September, the average 30-year rate dipped to ~6.13%. 

• Economists and analysts expect modest further declines, with many forecasting rates hovering between 6.0% and 6.5% through the end of 2025. 

• Fannie Mae now expects mortgage rates to finish 2025 around 6.4% and edge below 6% to ~5.9% by the end of 2026. 

Why Rates Aren’t Collapsing

• The Federal Reserve’s influence is indirect: while it cut its benchmark rate, mortgage rates are also driven by the bond market, inflation expectations, and investor demand. 

• Inflation, economic data surprises, or global uncertainty can push rates upward again. 

• This means while rates have eased, this is not a return to ultra-low rates — but rather a correction toward more reasonable levels.

What This Means If You’re Buying or Selling in Utah

The Utah housing market in 2025 isn’t the frenzied free-for-all it once was. Instead, it’s becoming more balanced. Buyers have more inventory to choose from, sellers are offering incentives, and affordability—while still challenging—is starting to improve.

• For buyers: This could be your chance to re-enter the market before competition heats up again. With prices stabilizing and rates softening, the conditions are friendlier than they’ve been in years.

• For sellers: Well-prepared, well-priced homes are still moving, especially in desirable areas. But flexibility is key. Concessions, staging, and realistic pricing can help your listing stand out.

Conclusion

Today’s Utah housing market is shifting. Prices are stabilizing, mortgage rates have softened, and buyer confidence is creeping back in. But this is not a return to frenetic growth — it's a more tactical, balanced environment where preparation and timing matter more than ever.

If you're considering buying or selling in Utah, this is a pivotal window to move. Let me help you:

• Understand your neighborhood’s specific trends (Salt Lake, Utah County, or rural Utah).

• Run accurate affordability analyses based on your down payment, credit, and local rates.

• Build a strategic plan—whether that means hitting the market soon or positioning to act when rates dip further.

Ready to make your move in Utah? Get in touch with a local real estate expert today. I’d be happy to walk you through the data, plan your strategy, and help you navigate this evolving market with confidence.