09/17/2026
I’ve always like the number 7, but am not a fan of Interest rates at 7%.
What will 7 percent rates mean for the housing market here in Southern Arizona?
Are rates going to come down soon?
Is it a good time to buy or sell?
These are questions I’m hearing from a lot of friends these days.
I don’t have a crystal ball, but I can say with certainty that people will continue to need a place to sleep at night and somewhere to store all the things they’ve collected. Nationally, millions will change housing in the next year. In Tucson, tens of thousands.
And if the cost of renting is about the same as buying, many people will choose to buy, no matter the rates or prices
Housing is driven by life. People start careers and buy their first house. They get married, have kids and need more space. They make more money and buy a bigger house. The kids leave and they downsize. Parents move in and suddenly they’re looking for a family compound.
The point is, as our lives change, our housing needs change, and people move.
Personally, I think one of the things propping up the market right now is the number of homeowners with very low interest rates who feel “trapped.” They may want to move, but unless they have enough equity to put a substantial amount down on the next house, or buy it outright, giving up a 3% mortgage for something close to 7% simply may not make financial sense.
At the same time, Southern Arizona continues to attract buyers coming from more expensive markets. Many have sold homes elsewhere and arrive with substantial cash or equity. They may also be accustomed to markets where prices have seemingly gone up, up, up, so they can be more comfortable paying a premium for the house they want.
We’re also starting to see more loan programs with introductory or temporary lower rates. Having lived and worked through the housing crash that began in 2006, I’m cautious about these programs.
They can make sense in the right situation, but I think buyers need to be comfortable making the payment when the lower rate goes away. Buying based on the assumption that rates will come down and you’ll simply refinance later is a gamble. Rates may come down, but there’s no guarantee of when, or by how much.
When enough people make financial decisions based on the assumption that tomorrow will bail them out, that’s when problems can begin.
I could go on and on about this stuff. These questions are always running through my mind, and after 30 years in real estate, I still love discussing them.
So if you have a specific question about buying, selling, interest rates, prices, or what’s happening in Southern Arizona, please feel free to reach out directly or leave a question here.
