How long can rates stay this low, especially when you look the the rate trend graph below.
The first half of this year will be a period of adjustment to fiscal restraint as well as uncertainty of policy going forward. Yet, most economists feel GDP growth will gain momentum over the course of the year, as households and businesses adjust to the new fiscal framework and residential construction steadily improves. Single family housing starts are expected to rise 27 percent this year and multifamily starts should rise near 30 percent.
The housing market continues to strengthen as the excess inventory of homes has gradually diminished, household job/income prospects have improved, bank balance sheets have stabilized, and home prices have moved upward. Interest rates remain at all-time lows as the Federal Reserve continues to use their balance sheet to buy mortgages and keep rates low. Interest rates are likely to rise when the economy has enough momentum to sustain growth without the help of the fed. No one knows for sure when that will happen but now is a great time to take advantage of these interest rates.
Based on this, now is a great time to buy a home, especially in the Phoenix market. While Phoenix home prices have risen over the last 12 months, there are still some great buys out there. New construction is really starting to pick up across the market. Some of the master planned communities like Verrado, Estrella Mountain and Anthem have seen brisk open house traffic withe Phoenix area home buyers looking to take advantage of both price and rates. Even Canadians looking to purchase a second home or investment property are taking advantage of this.
If you are a home buyer looking in Phoenix, be sure to check out our advanced home search tools. You'll be able to see every detail on any MLS listed home from price per square foot to days on market. If you have any questions, one of our local area real estate experts would be happy to assist.