Arizona Mortgage Rates – How Low?

Low Arizona Mortgage Rates

When I hear people complain about Arizona Mortgage rates closing in on the 4% range all I can think is “Never look a gift horse in the mouth” – a saying I can still hear my mom telling me as a little boy.  It is based on the fact that one of the ways a horse owner judges the quality of its horse is by the stallion’s tooth quality.  Therefore, if someone gives you a horse, good manners would have you not judge the gift but be thankful instead.  This saying holds true with today’s Phoenix mortgage interest rate market.

While there is no real down side to getting the absolute lowest mortgage rate, looking a gift rate in the mouth may be costly.  It is easy to get spoiled when looking for the best rate for your Arizona home purchase or home loan refinance.  With rates as low a 3.25% on a 30 year fixed mortgage just a few weeks ago, many start to complain when the market shifts and rates go slightly over 3.5%.  Let’s put things into perspective from a historical standpoint.  Check out these charts to see where rates have been in comparison to where we stand today:

30 Year History of 30 Year Fixed Mortgage Rates

200 Year History of 30 Year Fixed Mortgage Rates

Low Phoenix Mortgage Rates May be Here for a Long Time

One interesting note is that there were periods over the past 200 years where AZ mortgage rates were as low if not lower than where we are today.  There were a few times, the 3% ish 30 year fixed Phoenix mortgage rates lasted for 10-18 years.  With the government’s current focus on keeping our mortgage rates extremely low with programs such as QE3 it is likely that we will enjoy this low rate environment for a few years to come.  10 – 18 years of super low mortgage rates?  I don’t think so.  Today’s economic circumstances are quire different from those that existed in the first half of the 20th century.   At this point, economic forecasts indicate 1-2 years of low rates for now.

At the same time, the fact that 30 year fixed mortgage rates dipped below 3% for only a handful of years during the past 200 should speak loud and clear.  Don’t hedge your bets.  Take advantage of what is out there whether you are in a position to refinance or to buy.  If rates dip below 3% there is nothing stopping you from refinancing again.   You will have saved money in the meantime.  If rates do not drop to anemic/low levels below 3% you will be the smart one that jumped at the right time.  Either way… you win!

If you are looking to refinance your Arizona Mortgage or purchase a new home in the Phoenix area and we can help, please call or email me.

By Jeremy House
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