Close
Bonneville Phoenix Network
 KTAR News
 Arizona Sports
92.3 FM KTAR
Menu
Social
Latest News
Updated Jul 15, 2013 - 12:09 pm

Jump in mortgage interest hasn't slowed home buying

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.

World Class Arizona

  • APSWorld Class Arizona with Arizona's largest and longest-serving electricity utility. APS serves more than 1.2 million customers in 11 of the state's 15 counties.

Voice For A Better Arizona

About the Author


Position: Senior News Reporter. Started with KTAR July 4, 1999.

Favorite spots in Arizona: Pinetop-Lakeside, Alpine, Greer.

Have covered some of the biggest stories in Arizona including nine of the top 10 largest wildfires in state history. The Wallow Fire in 2011 became the largest fire in state history. Rodeo-Chediski Fire in June 2002, which is the second largest fire in Arizona. Covered the Yarnell Hill Tragedy in June 2013 that left 19 Granite Mountain Hotshots dead.

Favorite movies: True Grit, both 1969 John Wayne classic and the remake with Jeff Bridges and Lonesome Dove.

Sports Teams: Washington State University Cougars, Texas Longhorns, The University of Montana Grizzlies.

Comments

comments powered by Disqus
Latest News