PHOENIX — A Valley real estate expert said the recent boost in mortgage interest rates isn’t slowing the home-buying market.
The interest rate boost is actually working in the buyer’s favor, according to Dean Wegner with Guaranteed Rate. He said for the past couple of years sellers held all the cards, picking from multiple offers. This interest rate boost levels the playing field.
“Buyers will have more flexibility negotiating with an easier close of escrow, you won’t get bullied by other buyers or their agents,” he said.
And to potential home buyers who are frightened off by a 5 percent mortgage rate, Wegner said rentals come with a 100 percent interest rate.
Wegner said the rate hike to almost 5 percent prevented a possible housing bubble because seeing home prices jump 20 percent year over year was unsustainable.
“We needed something to hit the brakes.”
Wegner said the interest rate boost will add about $150 each month to the mortgage on a $250,000 home and much of that is tax deductible.
- The best places to celebrate Fall in Phoenix
- Infamous athletes who did the most time for their crimes
- 2016 baseball highlights, bloopers and blunders
- See how CFOs really feel about business in the Valley
- The best television shows on the internet
- A preseason guide to avoid holiday weight gain
- The 5 worst things you could do for your roof
- 6 coolest things brewing in Arizona
- The virus that keeps head and neck cancers on the rise
- State Fair ‘Kid Reporter’ has all the angles covered
- 4 important things to know about timeshare maintenance fees
- Signs of delayed car crash injuries
- The truth about sports concussions
- The Alzheimer's epidemic: Facts you need to know
- The season is here, keep your Fantasy Football team strong all season
- 8 TV shows you can't miss this fall
- Football is here: 6 tips to make this your best season ever
- Gameday recipes and beers to match
- 6 reasons the Cardinals are driven to win the Super Bowl
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier