Phoenix Real Estate Prices Will Remain Strong Even as Mortgage Rates Increase

Rapidly increasing Phoenix real estate prices are starting to worry locals. When will the monthly leaps in home values end? Even nine straight hikes in short term interest rates haven’t cooled the Phoenix real estate escalation trend.

Gail Buckner, a columnist for FoxNews.com, thinks she may have the answer. It’s long term Phoenix real estate interest rates that locals should keep their eyes on. “If you were thinking about buying a home and saw interest rates going up, what would you do, wait? No way! The prospect of higher mortgage rates prods everyone who’s been sitting on the fence to finally sign on the dotted line and close the deal!” According to Buckner, that is the reason why Phoenix real estate sales and prices have remained so strong.

She also explains that at some point, “interest rates will get sufficiently high that they drive up monthly mortgage payments beyond the reach of most buyers.” It is at that point that Buckner predicts Phoenix real estate sales will slow and prices weaken.