Arizona Real Estate Q3 Market Update: Mortgage Rates, October Outlook, & Trends

By Ron Palmer

Ron’s expertise has earned him a spot among the top 50 realtors in the Valley. Happily married for 38 years, Ron is a proud parent and grandparent and holds CDPE, CIAS, and CNE designations, reflecting his dedication to client success.

Are lower mortgage rates enough to get Arizona buyers moving? Mortgage rates just dropped to 6.55%, the lowest we’ve seen this year. That’s definitely big news for anyone watching the market, but the real question is, are these lower rates enough to get buyers off the sidelines and into a new home? Let’s take a closer look and find out.

Purchase applications are up, but contracts aren’t. We’ve seen purchase mortgage applications rise recently, which shows that there’s interest out there. However, this strangely hasn’t translated into a big jump in homes going under contract. This could be because nearly 70% of buyers have a home they need to sell first. Most people don’t feel comfortable making their next move until their current property is under contract.

If you’ve ever been stuck in that situation, you know how stressful it can feel. That’s why we offer an Equity Advance program. It gives you the ability to buy your new home first, close on it, move in, and then sell your current home afterward. Having that flexibility takes away a lot of the pressure.

Seasonal market factors. There’s another thing to keep in mind: Q3 is historically the slowest quarter of the year. It’s hot, families are finishing summer vacations, and kids are heading back to school. That slowdown happens almost every year, but the good news is October could look much better if rates stay where they are or even drop further.

Affordability and market outlook. Over the past three years, demand has been steady but sluggish. Affordability has been a real challenge for buyers. But now, with some areas seeing stable or even lower prices, paired with these lower rates, there’s a big chance that buyers could finally make a move.

If you’re wondering whether to take action before the market heats up, now’s the time to talk strategy. Call or text us at 602-750-0662 if you have any questions or are interested in the Equity Advance program. You can also send an email to customercare@soldwithresults.com. We’ll see what these lower rates could mean for you.