The housing market is in a difficult place for buyers in 2021. The number of homes being bought has been decreasing for the home buyer that wants to reside in a home they own, and I-buyers and institutional/corporate buyers dominated home purchases in Arizona for several months of 2021. While driving the cost of homes up has resulted from the institutional buyer's domination. This leaves the buyer in a situation where they have less to choose from and are forced to pay more for a house.
How Low Rates Affect the Housing Market
The rates are at their lowest point in the last ten years, giving people an opportunity to become homeowners despite the crazy home prices.
Low mortgage rates are not enough to make housing affordable for everyone in Arizona. However, they give people who want to buy a house an opportunity, especially if they own a home and can roll the equity into the new home they purchase.
Effects of Rising Interest Rates on the Real Estate Economy and you + What to Expect in 2022
Higher mortgage interest rates may not seem like a big deal, but when you factor in the increase to other costs like food, utilities, and transportation, it can be challenging to the monthly budget. According to statistics, the average monthly mortgage payment in the U.S. is around 1500 a month.
The effects of rising interest rates are both good and bad for the economy, depending on who you ask. Increasing mortgage interest rates will likely slow home construction and decrease household spending for higher-earning households who carry mortgages with higher balances than lower-income families with lower credit scores.
If the interest rates go up by one percent, it will affect you and your finances in a few different ways. First, your monthly mortgage payment will be higher for a new home purchase. Secondly, the total amount of money you owe to your lender will be higher because of increased interest rates.
As the Arizona economy continues to improve over the next few years, we can expect interest rates to rise as well. This can slow home sales and give home buyers negotiation room! Rising interest rates mean that borrowing money will become more expensive, and it may be difficult for you to find a home loan with such high monthly payments.
Rising rates may stabilize the real estate market and give home buyers opportunities in 2022 they did not have in 2021.
What is a Good Mortgage Rate? This Calculator Will Let You Know!
As Arizona house prices continue to rise, so does the cost of purchasing a home. Many homeowners are wondering how to get the best mortgage rate.
This helpful calculator will help you do just that! You can use this calculator to see which mortgage is right for you and your financial situation.
Conclusion: A Win-Win for Homebuyers & the U.S. Economy
The Arizona real estate market could benefit from the higher rates and slowing of Multiple Offers because there are more AZ homes to choose from, sellers are more willing to negotiate, and buyers can save money.
No More Multiple Offers is a win-win for homebuyers and the Arizona economy. It allows for more homes to be chosen from, gives home buyers the freedom to negotiate prices, and saves buyers money in the process. This potentially can provide the AZ economy with a boost. By allowing for an increase in consumers looking for homes but couldn't afford them before. Because they were put off by high prices or competition among institutional buyers competing for just about one property at a time. Homebuyers wanted many properties to choose from but couldn't afford them because of competition with other consumers who had an open checkbook.
2022 Arizona Real Estate should be easier for homeowners that want to move, giving them more choices and less worry about selling a home and having no place to go, actually being able to sell and buy a home.