How will upcoming interest rates affect the Phoenix real estate market? I’ll explain why we don’t have much to worry about today.
Looking to buy in Phoenix? Get a full home search
Looking to Sell in Phoenix? Get a free home value report
Right now, there is a lot of concern about what will happen to our market if interest rates go up. However, I don’t think we have much to worry about here in Arizona.
For one thing, mortgage rates move independently from the Federal Reserve’s rate. An overnight increase in the Fed rate will not have an effect on our short-term market.
Secondly, all leading economists predict that any interest rate increases will be small. The Fed is very concerned about the real estate market, so they will watch it very closely before making any decisions.
"Don’t worry about the Fed raising interest rates."
Even a 1% increase in interest rates, which is pretty big, would only change your monthly payment by about $120. That’s because the average sales price in Arizona is lower than in other parts of the country, especially those that have a lot of $7 million homes to sell.
So, don’t panic about interest rate increases. If you have any other questions about our current market, just give me a call or send me an email. I would be happy to help you!
