Scottsdale Homes Will Keep Increasing In Price Until Mortgage Rates are Sky High

Nine rate hikes in short term interest have done little to lower the demand and prices of Scottsdale homes, and this is partly because long-term rates have varied very little. “Short term rates have the biggest impact on adjustable mortgages, but low long term rates are keeping 30-year fixed mortgages very affordable.”

Many market watchers believe that once interest rates start to increase so will demand for Scottsdale homes, but Gail Buckner, a columnist for FoxNews.com believes just the opposite.

Buckner explains that 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.” Buckner says that demand for Scottsdale homes will only weaken when interest rates are so “high that they drive up monthly mortgage payments beyond the reach of most buyers.” Only then will the prices of Scottsdale homes weaken.