Utah consumer sentiment falls to lowest level since May amid soaring gas prices, mortgage rates

SALT LAKE CITY — For the past few months, Utahns have weathered a tumultuous storm of economic strains, maintaining a more positive outlook than the rest of the country.

That changed last month, with Utah's consumer sentiment dropping 4.6% in September, according to the Zions Bank Consumer Sentiment survey.

The decline marks Utahns' lowest sentiment level since May, erasing three consecutive months of sentiment gains.

"Consumers are feeling the impact of the Iran military conflict in the form of higher prices at the pump and at the grocery store," Robert Spendlove, a Zions Bank senior economist, said in a statement. "Coupled with rising mortgage rates, these developments helped drive the decline in sentiment in September."

The national average price of a gallon of regular gas was $4.37 on Wednesday, down slightly over the last week but still $1.25 per gallon more than this time last year, according to AAA data.

Prices are even higher in Utah, with drivers paying an average of $4.92 per gallon. In more rural areas like Wayne and Piute counties, prices exceed $5 per gallon. On average, Utahns are paying $1.52 per gallon more than this time last year.

The outlook for home buying isn't any rosier, with the weekly average for a 30-year fixed-rate mortgage at 7.28%, according to Freddie Mac—the largest week-to-week jump since October 2022.

With higher rates making it more expensive for prospective buyers to borrow money, mortgage applications fell by 4.2% week over week, according to the Mortgage Brokers Association.

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