PHOENIX (3TV/CBS 5) – According to Freddie Mac, mortgage rates have hit a 22-year high this week at 7.23%. The higher interest rates could be pricing out new homebuyers in the Valley.
Alexz Jones with Bison Ventures said if you can afford it, you should buy now and not wait until the rates go back down. “My advice is get into the door now; it’s not the forever home. We know rates will drop, we don’t know when, we don’t know how much,” he explained.
There is still some demand since the inventory is so low in Arizona, but it is not the same feeding frenzy sellers experienced when the rates were much lower. Jones advises buyers who can afford it to get back into the game and build equity, then refinance when rates get lower. “For people putting minimum down, or payment assistance program, this is still your time to shine because of the other people are scared of their interest rates,” he explained.
In the Phoenix metro area, the average non-mortgage debt is slightly higher, at $40,484.
He says the lower inventory could partly be attributed to sellers not wanting to return to buying a home with these higher rates.
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Source: azfamily.com