How mortgage rate drop will impact Phoenix housing market
The latest mortgage rate drop has enticed some previously reserved homebuyers back to the housing market. The Fed’s recent interest rate hike is also helping buyers’ long-term mortgage interest rates, with the ten-year treasury, which controls long-term rates, dropping over 15 basis points due to the hike.
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The average rate on a 30-year fixed mortgage dropped approximately 0.385% this past week. What does that mean for Arizona’s real estate buyers and sellers this season?
As the spring housing market begins, rate drops will prove helpful for homebuyers. Even a fraction of a percentage point decrease can provide significant savings. For a buyer shopping for a $500,000 home with a 20% down payment on a 30-year fixed mortgage, the monthly payment is about $130 less than it was at the start of the month.
Uncertainty in the economic markets is putting substantial downward pressure on mortgage rates, which should benefit Arizona’s borrowers in the short term. The decrease in mortgage rates is already creating an uptick in mortgage applications for the second week in a row.
In spring, buyers and sellers tend to re-enter the housing market. With no signs of a slowdown in the Phoenix housing market, the current average home value in Arizona is $409,196, which is up 4.3% over the past year. The growth trend is expected to continue throughout the year, making it a great time to invest in Arizona real estate. The housing market is expected to remain competitive in 2023, with homes on the market 30-60 days and negotiations at about 95% of list prices.
The Arizona housing market has been experiencing steady growth over the past few years and this year will be no different. With demand for homes high and inventory still relatively low, we advise working with an agent you trust who is an expert is your desired areas as well as programs that could help you qualify for the best home loan. Purchase according to your needs and budget, ideally a property you love with the potential to see its value grow.
Author: As a Founding Partner at RETSY, one of the fastest growing technology-based real estate brokerages in Arizona, Angela Phillips specializes in luxury residential real estate, and is a Certified Resort and Second Home Specialist. Over the course of her career, she’s sold over $600 million of luxury single family homes and luxury condominiums. Angela has built an impressive client network due to a winning combination of achievements, a high consistent level of service and an impressive sales volume, averaging over $80 million per year.