TUCSON, Ariz. (KGUN) — As rent prices continue to rise across the nation, Tucson is no stranger to seeing an influx of people looking for affordable housing. Local brokerages understand people may be wondering if it’s worth it to buy rather than rent.
Long Realty in Tucson explains mortgage rates fluctuate 5,6,7 even 8%, but the interest rate is always going to be 100% when renting.
“You don't control your rent. If you do a 30 year mortgage at a fixed rate, it'll never go higher," said Kevin Kaplan, COO Long Realty. "It may go lower because rates go down and you have the opportunity to refinance.. but I doubt your rent is going to go down."
As of March 2023, interest rates are 6.4% for a 15-year and 7.4% for a 30-year fixed mortgage based off of a $300,000 loan.
Local realtor Natalie Davis explains to KGUN 9 that fewer buyers are willing to take that jump into the housing market, driving the demand down and causing home prices to let up.
“We all are fixated on interest rates after they were so low, but really the best time to buy or sell is when your circumstances dictate that it's a good time to purchase," said Davis. "Don't wait for the perfect time. It might never come.”
Kaplan and Davis say houses are selling at about 95% of what they list for because more sellers are negotiating rate buy downs and closing costs. Plus, they forecast mortgage rates to go up and down throughout the year impacting the local market.
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Brooke Chau is a reporter for KGUN 9. She was a part of Fresno State's newscast, Fresno State Focus and interned at KFSN-ABC30 in Fresno, CA before coming to KGUN 9. Share your story ideas and important issues with Brooke by emailing brooke.chau@kgun9.com or by connecting on Facebook, Instagram and Twitter.
