By Frank May, Real Estate Agent
In Peoria, the story of 30-year fixed mortgage rates is not just a reflection of national economic trends, but also a narrative deeply intertwined with local real estate dynamics.
This journey, since its tracking began by Freddie Mac in 1971, has seen rates as high as 18.63% in 1981 and as low as 2.65% in 2021.
The 1970s saw mortgage rates start at 7.5%, escalating and fluctuating throughout the decade. The 1980s were marked by economic upheavals, with rates peaking early and then stabilizing around 10% by 1988. By 2003, rates in Peoria, like the rest of the nation, had declined to the high 5% range, and the 2009 recession pushed them further down to 5.04%.
In Peoria, these shifts were mirrored in the local housing market. The historic low rates during the COVID pandemic led to a surge in home buying, while the recent climb above 8% has cooled the market, changing the dynamics for homebuyers.
Prospective buyers and homeowners in the area are now navigating this complex market. With predictions pointing towards a potential rate decrease in the coming year, it’s a critical time for real estate decisions in the area.
For Peoria residents, understanding these fluctuations and their implications is crucial. Lower rates typically mean more affordable borrowing and a vibrant real estate market, while higher rates can lead to decreased demand and a cooler market, with more negotiation power for buyers.
Pros of Buying Now:
• Anticipated future rate decreases could lead to more affordable mortgages.
• Current market conditions offer a wider selection of homes and less competition.
Cons of Buying Now:
• Higher mortgage rates mean increased borrowing costs.
• Uncertainty in rate movements poses challenges for financial planning.
As an experienced professional in Peoria’s real estate landscape, I understand the complexities of navigating the market, particularly during times of fluctuating economic conditions. My role is to provide you with the expert guidance necessary to traverse these ever-changing waters.
Peoria’s housing market often reflects broader national trends, yet it is the local nuances and informed insights that truly guide successful real estate endeavors in our community. Whether you are looking to buy, sell, or simply explore your options in the area’s dynamic real estate market, a deep understanding of history and current trends is crucial. My commitment is to ensure that you are well-equipped with the knowledge and expertise needed to make informed decisions, helping you achieve your real estate goals.
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.