TUCSON, Ariz. (KGUN) — The state of Arizona is facing inflation head-on and is experiencing a greater amount of rising mortgage rates compared to everywhere else in the country. Local Southern Arizona realtors say they saw this coming.
“It was bound to happen. I don’t think any of us thought it would go this far but the market is cyclical, rates go up and down so secure it now while home prices are steady in the way that they are," said Allie Pastore, Co-Owner of the Alder Group.
The market shows that the U.S. 15-year fixed mortgage rate is at its highest level since October 2008 at 6.25%. The Arizona 15-year fixed mortgage rate is at 6.44%.
In 2021, Arizona's 15-year fixed mortgage rate was 2.88%. This is because the federal reserve is increasing mortgage rates to fight inflation. By raising the rates, the federal reserve is decreasing the demand by increasing the amount that it takes to borrow money.
This has also caused homes on the market to decrease drastically.
“The days on the market back in 2015, was 61 days. That was a little bit more in the normal realm. Last year we were seeing 17 days… 17 compared to 61 and right now, September August 2022, we are looking at 12," said Ali Garced, Realtor with EXP.
Now, potential home buyers are getting pushed out of the market as the higher rates have added hundreds of dollars to monthly mortgage payments. Plus, by the end of the year experts anticipate rates will climb up to 7%.
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Brooke Chau is a reporter for KGUN 9. She was a part of Fresno State's newscast, Fresno State Focus and interned at KFSN-ABC30 in Fresno, CA before coming to KGUN 9. Share your story ideas and important issues with Brooke by emailing brooke.chau@kgun9.com or by connecting on Facebook, Instagram and Twitter.
