Mortgage rates have largely held steady going into the end of January, offering some predictability for prospective homebuyers and those looking to refinance. As of this week, the average rate for the 30-year fixed mortgage hovered around 6.88%, down slightly from the previous week. Meanwhile, the 15-year fixed mortgage rate was at 6.23%. With inflation showing signs of easing and the Federal Reserve maintaining its pause on interest rate hikes, borrowers can cautiously hope for some relief in housing costs—although significant rate drops may still be slow to arrive.
Despite the current rate environment, real estate market activity remains strong in some regions. Experts suggest that while interest rates are a significant factor in housing affordability, a limited housing supply and strong demand continue to keep home prices from declining meaningfully. Homebuyers, especially first-timers, are still facing challenges including tight competition and climbing property values, even as rates settle lower than the peak highs seen over the past two years.
For investors, the relatively stable interest rates present opportunities in markets with strong population and economic growth. Arizona, in particular, continues to be an attractive destination for real estate investment due to its robust job market and expanding metro areas like Phoenix and Tucson. Those involved in Arizona real estate investing can benefit from ongoing demand, steady rental income opportunities, and potential long-term appreciation. To stay informed on market trends, visit this resource for updates on Arizona real estate investing.
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