What’s Really Behind the Tucson Housing Market Recovery?

Tucson Housing Market Mortgages Recovery

Tucson Housing Recovery

The housing market has shown several consecutive months of improvement in home prices and buyer demand. The housing market—once a downer for the U.S. economy—is now its one bright spot. But why?
A recent TIME magazine article questions what’s really behind the real estate market’s improvement.

Tim Iacano of Iacano Research credits the majority of the recovery and rise in home prices — if not all of it — to the Federal Reserve’s aggressive actions to keep mortgage rates low. The Fed’s quantitative easing (QE) program has prompted mortgage rates to fall to all-time lows in recent weeks.

Tucson Housing Market

The lower interest rates have increased Tucson home buyers’ purchasing power and boosted affordability to purchase a home in Tucson AZ.

For example, Iacano points out that a Tucson home buyer today could purchase a Tucson house for sale worth $280,000 and if he’s able to snag a record-breaking 3.3 percent Tucson mortgage rate, he’ll have a $1,100 per month mortgage payment.

Tucson Housing Market Growth

“Even if mortgage rates moved back up to their 20-year average rate of 6.5 percent (what many thought were  simply unbelievable rates when they first dropped that low last decade), that same $1,100 mortgage payment would finance a Tucson home purchase of just $193,000, not the current $279,000,” Iacano points out. “The difference between these two prices  is nearly 50 percent!” [Source Time Magazine]

This really is a time that I tell my family and friends to purchase real estate in Tucson. Please let me know if I can help you.

My best,
Carl F. Pepper, Realtor
carl@MyOwnArizona.com
www.MyOwnArizona.com
(520) 822-6575