What is the impact of low mortgage rates on the housing market in Phoenix?
When COVID-19 rocked the world in 2020, changes happened across all industries. Lifestyles changed, and with people staying at home, the need for bigger or roomier spaces increased, converting rooms into home offices. Homeowners are either selling their houses or looking for a new one, keeping the housing market very much alive.
2020 brought on low mortgage rates, and because of this, there is a huge impact on the housing market. With Phoenix mortgage rates at a record low price, people are excited to take advantage and snatch up a new property. Mortgage applications are also on the rise, with more people wanting to refinance their homes or invest in a new one.
With the low Phoenix mortgage rates, this also means higher prices for existing and new listings in the housing market. Home sales are on the rise, and this has caused a shortage in supply. In August 2020, Phoenix saw a 10% increase in selling prices for new homes, but the low mortgage rates are not the only reason for this, but because the demand is also higher than the available homes for sale.
Even new home constructions are on the rise too, thanks to Phoenix mortgage rates at a record low. However, with various restrictions brought on by the pandemic, work is slower and the different regulations also drive prices higher, even when mortgage applications are on the rise. Even with the rise in home constructions, this is still not enough to fulfill the demand for property buyers in Phoenix.
With the demand still high and supply still low, Phoenix is poised to remain in the seller’s market for the coming months, and 2021 might not see a reduction in prices. This does not mean that the housing market will take a slump, because according to the Zillow Home Value Index, Phoenix had the eighth consecutive year of home price gains. This keeps Phoenix hot in the housing market.
If you are in Phoenix and neighboring areas and would like to take advantage of the low mortgage rates, now is your chance to get a mortgage application. New listings have gone up, and you might find one that will fit right into your budget, making you the owner of a new home.
blakemortgage.com can help you with all things regarding a mortgage. Serving Phoenix and surrounding areas since 2002, the company has provided numerous individuals in getting financing for their dream homes. As a family-owned mortgage company, Blake Mortgage understands the value of purchasing a dream home and the importance of having the right finances to make that move.
Blake Mortgage offers different forms of loan services – from refinancing to debt consolidation to home purchase loans and more. The company can help you take advantage of the low mortgage rates in Phoenix, and help you get the home of your dreams or new investment property. Blake Mortgage will be happy to walk you through the entire process of getting a mortgage and will explain complications in the simplest of terms so you will not have to stress over understanding which one you will need and how to get the mortgage that fits you. Set an appointment now and strike while the Phoenix housing market is hot.