We're looking at his right hand with the palm up closest to the ball, which means we could either be seeing (i) his entire right hand and blue glove (in which case the ball is clearly touching the ground), or (ii) just his right thumb (in which case his fingers are hidden under the ball). The nose of the ball appears to be downward so if scenario (ii) is going on then it's very possible the ball didn't hit the ground. I think a side angle would remove all doubt on that (probably not in BYU's favor).

To be clear, watching in slow motion and seeing the player's reaction I figured it almost certainly hit the ground and should have been an incomplete pass, but it looked like an interception to me live when we didn't have this angle and so I understand why it was called that way at first. Definitely a tough break for SH.