By Kaylea Fiscus | Waypoint Realty Group
Updated October 26, 2026
If you’re thinking about buying a home in Utah, you’ve probably asked: “Should I wait for rates to come down?”
It’s a fair question. Your interest rate affects your monthly payment, but it’s only one piece of the decision. The purchase price, closing costs, available seller credits, and how comfortably the home fits your budget all matter.
With my background in mortgage lending and my work helping Utah buyers and sellers, I believe the best starting point is understanding your options before you decide to move—or wait.
Where are mortgage rates right now?
Freddie Mac’s latest weekly survey, released October 22, 2026, reported national averages of 7.32% for a 30-year fixed mortgage and 6.68% for a 15-year fixed mortgage. The 30-year average eased from 7.40% the previous week, but remained above 6.19% a year earlier. [1]
These are national survey averages, not a Utah lender quote or a rate guaranteed to any borrower. Your pricing depends on your loan program, credit profile, down payment, property, points, and rate-lock terms. VA, FHA, and conventional offers should be compared using actual lender estimates.
A lower advertised rate can also come with higher upfront costs. Ask what it costs to obtain that rate and compare the APR, fees, and cash required at closing.
What is a permanent rate buydown?
A permanent buydown usually means paying discount points at closing in exchange for a lower interest rate. On a fixed-rate mortgage, that lower rate applies while you keep the loan.
One point equals 1% of the loan amount: $4,000 on a $400,000 loan. One point does not automatically lower your interest rate by one percentage point. The reduction varies by lender, loan, and market conditions. [2]
Ask your lender for options with and without points. A useful starting calculation is:
Additional upfront cost ÷ monthly savings = simple break-even period.
For a hypothetical $4,000 cost and $100 monthly savings, that is 40 months. This simplified calculation doesn’t account for the time value of money or other loan differences. Consider how long you expect to keep the mortgage and whether paying points leaves enough savings for repairs and emergencies.
How does a temporary 2-1 buydown work?
A temporary buydown uses money deposited upfront to subsidize part of your payment for a limited time. It does not change the underlying fixed note rate. A seller or builder may fund it as part of a negotiated agreement, subject to program and lender rules. [3]
Here is an illustration using a $400,000 loan, a 30-year fixed term, and a hypothetical 7.32% note rate:
Illustrative monthly principal and interest on a $400,000, 30-year fixed loan:
Year 1: 5.32% payment equivalent — $2,226
Year 2: 6.32% payment equivalent — $2,481
Years 3–30: 7.32% note rate — $2,748
The subsidy covers the difference during the first two years; the illustrated funding requirement is approximately $9,458. Calculations use unrounded payments before rounding the results shown.
These figures exclude property taxes, homeowners insurance, mortgage insurance, HOA dues, and other costs. They are educational calculations, not a loan offer, APR disclosure, or personalized quote.
For Fannie Mae fixed-rate loans, borrowers must qualify at the full note rate. Ask your lender about your specific program and what happens to unused funds if you sell or refinance. [3]
Choose a payment you can sustain after the subsidy ends. Future refinancing is an option to evaluate, never a guarantee.
Should you negotiate a lower price or seller credits?
Both can be useful, but they solve different problems.
A price reduction lowers what you pay for the property and generally reduces borrowing when your down payment structure stays the same.
A seller credit can help cover eligible closing costs or a lender-approved buydown, potentially preserving cash or lowering payments.
The better choice depends on your cash reserves, timeline, and lender’s side-by-side calculations. Credits have program limits and eligible-use restrictions. They aren’t unrestricted cash, and they generally cannot replace your required down payment. Any negotiated price must also work with the appraisal and financing.
For sellers, a credit may help address a buyer’s affordability concerns. We should compare the likely buyer benefit with your net proceeds before selecting an offer strategy.
What do current market trends tell us?
Nationally, September existing-home sales increased 1.5% from August but were down 2.2% from a year earlier, according to the National Association of REALTORS®. Inventory reached 1.60 million homes, while the median sale price was 1.3% above the prior year. [4]
My takeaway: slower activity does not automatically mean falling prices everywhere. Rates, inventory, and prices can move in different directions.
Those national figures also don’t establish the value of a home in Layton, Clearfield, Ogden, or Salt Lake City. For a Utah purchase or listing, we need to examine nearby comparable sales, active competition, days on market, price adjustments, and concessions at the relevant price point.
More negotiating room may exist on a particular listing, but it should be supported by that property’s competition and the seller’s circumstances.
Should you buy now or wait?
Start with your finances and plans. Can you afford the full payment, maintain reserves, and stay long enough for the purchase to make sense? If so, it may be worth exploring the available homes and financing options. If the numbers stretch your budget, taking time to prepare can be the stronger decision.
Don’t build your plan around a promised rate drop, guaranteed appreciation, or an assumed refinance.
Let’s compare the options before you decide. I can help you evaluate local homes and negotiate purchase terms, while a licensed mortgage professional provides personalized financing scenarios. Whether you’re a first-time buyer, relocating to Hill Air Force Base, using a VA benefit, or planning your next move, we’ll start with a plan that fits your situation.
Connect with Waypoint Realty Group
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Sources
1. Freddie Mac Primary Mortgage Market Survey, October 22, 2026. Rates are a dated national snapshot and change over time.
2. Consumer Financial Protection Bureau: Lender credits and discount points.
3. Fannie Mae: Temporary Interest Rate Buydowns.
4. National Association of REALTORS®: September 2026 Existing-Home Sales.
