With rising interest rates, you might be asking yourself if it’s the right time to buy a home? The answer is “yes”! There are plenty of home listings in Scottsdale, despite the latest boost in rates by the Federal Reserve. 

Interest rates have gone up from 3.68 percent to 4.2 percent since November, according to Freddie Mac, but they remain at historical lows. Since late 2009, rates to buy a home have been below 5 percent. Economists, though, are predicting a hike in rates 2-3 times this year. So, now is a good time to check out home listings in Scottsdale.

Fortunately, rates are not expected to rise more than one-half to three-quarters of a percent. Basically, that means rates should remain below 5 percent for a 30-year fixed rate home loan. That’s good news if you’re looking to buy a home for sale in Scottsdale.

Many factors go into the Federal Reserve’s decision to raise rates. One reason why the board has kept rates low is due to strength in buying of US mortgage-backed securities. This has been going on since 2009 and is expected to continue for the near foreseeable future.  Confidence in the US economy as a safe haven for investors, as kept mortgage-backed securities popular and interest low.

The federal fund rate is also expected to go up several times in 2017. This is the rate banks loan to each other at. While the federal fund rate has nothing to do with rising mortgage rates, it does impact the overall economy.

Other factors that could impact mortgage rates could be a huge shift in the economic policy in the U.S., a terrorist attack or some other international crisis. International markets beyond our home can also have a significant impact on our US lending rates.

When it comes to home prices, the median price of a home went up 5.5 percent last year. Expect prices in 2017 and for the foreseeable future to be flat or show modest gains.

Besides interest rates, there are other factors that can have more of an impact on how much your mortgage payment is each month. See rates affecting home buyers below.

Credit Score

The better your credit score, the better your interest rate. When looking at home listings in Scottsdale, you need at least a score of 740 to get the best rate from most lenders. 

Down payment

By making at least a 20 percent down payment, you’ll save on PMI or private mortgage insurance. That adds up to $70 to your mortgage payment for every $100,000 borrowed, according to Freddie Mac. Making a more substantial down payment, that will lower your payment even more since you will have a lower principal balance and stronger equity position in the home.


While we don’t have any control over what The Fed does when it comes to interest rates, you can always pay’ points’ to get a lower rate.

Closing costs

Closing costs vary with lenders and closing agents. It’s best to shop around. Many fees are negotiable and can vary significantly. For more on Buying a home in Scottsdale or anywhere in the greater Phoenix area, see below.

My goal is to be of service to you. I say it often but it cannot be said enough, ” in real estate, there is a difference in Real estate professionals” For more tips on a ‘best home buy” Please call me now at 480-450-4632.

Realtor -Specializing in Scottsdale, Arcadia and Paradise Valley Arizona

Michael Chaisson – Realtor
Russ Lyon Sotheby’s International Realty
Premier Client Services
Ranked Top 1% Nationally
Circle of 26 Excellence Award Recipient

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