PHOENIX — In an effort to curb inflation, the feds raised interest rates again last month and that means mortgage rates are now the highest they’ve been since the 2008 recession.
That also means interest rates are starting to go down. So what does this mean if you’re looking to buy or sell?
President of Arizona Realtors Gary Nelson says there is now more inventory on the market. He says within the past month, the average cost of a home in Arizona has gone down from $350,000 in June to about $340,000 in July. The Phoenix Business Journal reports for the Phoenix area specifically, costs are down from about $600,000 in June to $546,000 in July.
If you are already a homeowner and check Zillow regularly, you may notice your home value starting to drop. But Nelson doesn’t believe you should be too concerned.
“We’re already seeing a difference in interest rates just in these past few weeks. Interest rates have been rising and touching 6% but now they’ve kind of stabilize to about 5 1/2% depending on the day. But those are starting to stabilize already and I've heard some lenders predict potentially interest rates may drop throughout the year," Nelson said.
Because it’s now costing more to take out a mortgage, Nelson says he’s seen firsthand the change in what buyers can afford.
“Buyers right now are looking at properties that are completely different than they were six months ago,” Nelson said. “They were looking at a higher price range then and now have to look at a lower price range because of interest rates. Sometimes people are going for smaller square footage Maybe a different type of home. A town home or a patio home, something along those lines.”
