We're a few months out from the results of the election, so we can finally start to examine its impact on the real estate market. I'm joined by my preferred lender Tom Ross to help me explain.
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Buying a Phoenix Home? Search all Homes for Sale
Selling a Phoenix Home? Check out our FREE Home Value Report
Now that the election has been over for a few months, I wanted to bring in my preferred lender Tom Ross with Nova Home Loans to update you on the state of the market and how it has been affected.
As traumatic as the election itself was, the traumatic reaction in the market was from interest rates. The new administration meant there would be increased spending on defense and infrastructure, which are inflationary concerns. Whenever the market is concerned about inflation, Tom says, interest rates go up. Rates spiked nearly a full 1% before settling down in the mid-4% range.
So what will happen with rates this year?
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It doesn't make sense to wait to buy a home with rates going up.
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Toms says it depends on who you talk to. He says most of the smart money seems to think rates will be in the mid to high 4% range for most of the year. As we both know right now, though, the market is hot and prices are increasing. That's why it doesn't make sense to wait to buy a home. That's especially true when you look historically at how affordable things are right now. Before rates dropped into the 3% range last year, 4% was the lowest rate we had seen in history.
If you have any questions for Tom or you're thinking about refinancing your mortgage, you can reach him at 602.791.5861 or email him at tom.ross@novahomeloans.com.
As always, if you have any questions about the Phoenix real estate market or you're thinking of buying or selling a home, give me a call or send me an email. I look forward to hearing from you!
