Low Scottsdale Real Estate Demand Crimps Consumer Spending

The slowdown in Scottsdale real estate demand is already crimping consumer spending. There is now less cash floating around thanks to an increase in mortgage rates and a decrease in Scottsdale real estate refinancing. The situation is only expected to worsen as Scottsdale real estate construction and mortgage lending continue to soften and jobs in both industries begin to disappear.

As the Scottsdale real estate market turns sluggish, foreign investors will also begin to lose interest in the area. "Since 2000 foreign investors have poured $400 billion into mortgage-backed securities, which seemed safe and attractive." However, with increasing mortgage rates, fewer people will purchase Scottsdale housing, and foreign investors will invest elsewhere.