The Arizona Real Estate Market: A Look at the Current Trends
As the Arizona real estate market emerges from the July doldrums, experts are optimistic about the potential for increased sales in the coming weeks. One factor contributing to this optimism is the recent drop in mortgage rates, with the standard 30-year fixed rate falling below 6.5%, reaching a 14-month low.
According to Amy Swaney, a seasoned loan officer, “Between the interest rates coming down a little bit, and kids returning to school, we are starting to see things pick up for August.”
Average 30-Year Mortgage Rate Hits Below 6.5%
The decline in the standard 30-year fixed rate mortgage to below 6.5% comes after a peak of 7.2% in May. This drop has been driven by indications from the Federal Reserve that interest rates could be cut in September.
Realtor Kelly Schmidt from the Jason Mitchell Group acknowledged that the market remains “stagnant” with little activity. However, he remains hopeful for a shift in the trend.
Buyers Gain Leverage in the Market
Despite the ongoing shortage of affordable housing in Arizona, the decrease in mortgage rates has spurred interest from potential buyers. Real estate developer Jamison Manwaring noted, “As rates go down, more people may list their homes due to the high demand in Phoenix for buying and renting.”
Lisa Sturtevant, chief economist at Bright MLS, mentioned that buyers currently have more leverage in the market, although it is not yet a buyer’s market. This shift in dynamics could present opportunities for buyers to negotiate better deals.
New Home Purchasing Rules Take Effect
On August 17, new rules governing the home purchasing process will come into effect, placing more emphasis on the buyer’s ability to negotiate. Schmidt advises buyers to act now, as homes that have been on the market longer may provide greater opportunities for favorable offers.
In a move to stimulate sales, national lender United Wholesale Mortgage introduced a zero-down mortgage program for first-time home buyers earlier this year.
Overall, the Arizona real estate market is showing signs of activity and potential growth, fueled by declining mortgage rates and evolving market dynamics. Buyers and sellers alike are navigating these changes to make the most of the current market conditions.
