Recently, Redfin released information from a real-time homebuyers survey that indicated the recent increase in mortgage rates have impacted home buying decisions. Homebuyers in Arizona continue to be faced with lower inventory, but recently the mortgage rate increase has posed additional problems. Those entering the housing market have found the challenges of these rates affecting the choices made when buying a home. These increased rates have decreased the amount of money that buyers feel comfortable spending, and many feel the increase has affected their home search negatively.
This past quarter, buyer expectations also saw lower levels, and all indicators point to feelings that buyers do not feel the time is the right time to buy. At the same time, many sellers are hesitant, feeling the time is not right to sell either. Different reports demonstrate that rising mortgage rates are making home affordability more difficult. 63 percent of all people responding say that increased rates affected their ability to purchase a home this past summer. Currently the increase in mortgage rates has caused some to adjust their search speed either to a faster or slower rate. Sellers also indicated that control in the market has shifted back to the buyer from the recent trend of favoring the seller’s market.
Overall, those in the housing market are concerned most with rising rates and low inventory affecting their purchase. In Arizona the market is further faced with less new construction than seen before. The amount of new builds has slowed down in recent months. The current challenges, at time frustrating, are also part of a recovering market, and home buyers and sellers alike have seen positive recovery in Arizona as a whole.