Why Are People Still Buying Homes Despite High Interest Rates in Utah?

By Doug Cary

Doug Cary has been selling real estate in Davis County since 2005. He is a 2nd generation top producing Real Estate Agent.

Despite interest rates hovering around 7%, buyers are still actively purchasing homes. In Utah alone, more than 3,500 homes sold just last month, representing about one out of every four homes on the market. This trend continues because different groups of buyers are motivated by unique needs and circumstances that make today’s market the right time for them to move forward. Here are the buyers who are still making moves in our market:

1. First-time home buyers. First-time buyers don’t have a reference point for lower interest rates. They never experienced the two, three, or four percent rates from past years. What matters most to them is whether the monthly payment fits their budget. If it does, they are comfortable buying now and locking in today’s prices. When rates eventually go down, they can refinance.

2. Baby boomers. Baby boomers continue to make up a large part of the market, and many are downsizing. Most are not as concerned about interest rates because they either have no mortgage or carry a very low one. What matters more is getting rid of stairs, large yards, or homes that no longer fit their lifestyle. Their decisions are driven by comfort and practicality.

3. Relocating buyers. Relocating buyers make up another key group, especially in places like Utah. They may be leaving behind low-rate mortgages in places like Florida or California, but they need to move. Whether it’s for family or work, buying a new home becomes a necessity. Their move is not optional, so they adjust to the current rate environment.

4. Buyers under financial pressure. Some buyers are facing difficult transitions such as divorce, job loss, or the passing of a loved one. These life changes often force them to sell their current home and buy something more suitable. In these cases, the decision to buy is about solving a real need, not trying to time the market.

Each of these buyers is responding to a different set of circumstances, but they all share one thing in common: the need to move forward. Market conditions may change, but life continues to create moments that call for action. If you’re planning to move or need guidance in this market, just reach out. You can call me at (801) 450-0997 or email me at doug@dougcary.com. I look forward to hearing from you!