Mortgage rates in Arizona

Quick insights

• Your mortgage interest rate has a direct impact on your monthly payments and how much you’ll pay in total over the life of the loan.
• In Arizona, rates can vary based on several factors including the type of mortgage you choose, your financial history, housing demand and broader economic conditions.
• Rates shift often, so it’s a good idea to stay informed—especially if you’re buying in a fast-growing metro city like Phoenix or looking for a more relaxed pace in areas like Sedona or Flagstaff.

Arizona’s real estate landscape is as diverse as its desert sunsets. From new builds in suburban Scottsdale to adobe-style homes in Tucson or vacation getaway near Lake Havasu, mortgage rates can differ by location, price point and property type. Local market conditions, inventory levels and demand all shape the offers loan providers may extend.

In this article, we’ll explore how mortgage rates work in Arizona, what influences them and how to stay on top of the trends.

How to find mortgage rates in Arizona

Scoring a great mortgage rate in Arizona starts with knowing where to look and what to compare. Since rates can change based on location and even loan provider, doing a bit of research can pay off. Here’s how to begin:

• Use a zip code tool: Put in your target area on a real-time mortgage rate tracker to get a snapshot of local rate options.
• Monitor daily updates: Rates can move quickly, sometimes daily. Stick with a trusted source that updates frequently, so you’re not caught off guard.
• Explore refinancerefinance-hl000061 rates: If you’re already a homeowner in Arizona, compare refinance options separately from purchase rates because they are often priced differently. Visit our mortgage refinance rates page to explore options that may lower your monthly payments or shorten your loan term.
• Talk to a Home Lending Advisor: An Arizona-based Home Lending Advisor can offer insight based on the regional housing market and help you with your home search.
• Get prequalified or preapproved: Starting the mortgage prequalificationec-mortgage-prequalification or preapproval process can clarify important potential figures that are based on your specific situation.

U.S. mortgage rate trends

Current 30-year mortgage rates range between 5% and 10%. Here’s a look at annual averages of 30-year fixed-rate mortgage rates since 1971:ec-frb-stlouis-30year-frma

• 1974: 9.19%
• 1982: 16.04%
• 1990: 10.13%
• 1998: 6.94%
• 2006: 6.41%
• 2014: 4.17%
• 2020: 3.11%
• 2024: 6.72%

Factors affecting mortgage rates in Arizona

Mortgage rates in Arizona are shaped by a mix of personal finances and broader market conditions. While national trends, like inflation and Federal Reserve policy, set the tone. However, your individual profile carries a lot of weight when mortgage lenders determine your rate. Whether you’re eyeing a home in Phoenix, Sedona or Flagstaff, knowing what influences your rate can help you make confident decisions when buying or refinancing.

What can affect your mortgage rate in Arizona?

While national economic trends influence the general direction of mortgage rates, your personal financial situation plays a major role in determining the specific rate you’re offered. Home prices and local market dynamics can vary significantly from Phoenix to Prescott to Tucson. Loan providers look closely at several key factors when assessing your application and setting your rate, including:

• Credit history: A strong credit score and history of on-time payments show you’re financially responsible, which can be key to securing a lower rate.
• Income: Loan providers want to see dependable earnings over time. Whether you work in tech in Chandler or education in Tucson, consistent income counts more than how much you make in a single month.
• Type of employment: Full-time, permanent roles usually offer more lending confidence than freelance or seasonal gigs. A stable work history helps support lower rates.
• Debt-to-income (DTI) ratio: The less of your income that’s tied up in existing debt (like credit cards or auto loans), the better. A low DTI ratio typically demonstrates to lenders that you’re more likely to handle mortgage payments comfortably.
• Financial cushion: Loan providers may look for signs of overall financial health like an emergency fund, investments or other assets. These reserves suggest you’re better equipped to handle unexpected expenses and less likely to default.
• The size of your down payment: A larger down payment means you’re borrowing less and taking on more of the upfront cost, which can reduce your interest rate and eliminate the need for private mortgage insurance (PMI).

How the economy influences mortgage rates in Arizona

Mortgage rates in Arizona are closely tied to the overall health of the national economy. When key economic indicators shift such as inflation, employment levels or consumer confidence, loan providers adjust their rates accordingly. A major influence is the U.S. Federal Reserve (commonly referred to as “the Fed”). When the Fed changes the federal funds rate (the interest rate banks use when lending to each other), mortgage lenders typically follow suit by raising or lowering their own rates.

Mortgage rates by loan type in Arizona

The kind of mortgage you choose can significantly shape the interest rate you’re offered—and how much you’ll pay over time. Arizona homebuyers have a range of loan options, each with its own set of features, benefits and trade-offs:

• Fixed-rate mortgages: With a fixed-rate loan, your interest rate stays the same for the entire term—commonly 15, 20 or 30 years. This consistency makes it easier to plan your budget, which can be especially helpful in Arizona’s competitive housing markets like Phoenix or Tucson.
• Adjustable-rate mortgages (ARMs): ARMs typically offer a lower starting interest rate for the first few years (like 5, 7 or 10 years), then adjust at set intervals based on the market. This can be appealing if you plan to move, sell or refinance before the adjustment period kicks in.
• Federal Housing Administration (FHA) loans: Insured by the Federal Housing Administration, FHA loans are designed to help first-time homebuyers or individuals with smaller down payments or less-than-perfect credit. They often offer lower rates and more flexible approval standards.
• Veteran’s Affairs (VA) loans: Available to eligible veterans and active-duty service members and some surviving spouses, VA loans are backed by the U.S. Department of Veterans Affairs. VA loans often come with no down payment, no private mortgage insurance (PMI) and favorable interest rates.
• Jumbo loans: If you’re buying a home in Arizona that exceeds the state’s conforming loan limits, you may need a jumbo loan. This may be common in higher-priced markets like Scottsdale or parts of the Paradise Valley. These loans usually involve stricter credit and income requirements and may come with slightly higher interest rates due to their size and added risk to loan providers.

How rates affect affordability in Arizona

Mortgage rates directly impact your monthly payment and long-term costs. Even a slight shift can change how much home you can afford. A lower rate typically means more buying power and bigger savings. The length of your loan (such as a 15-year versus a 30-year term) also affects your total interest paid.

Use a mortgage affordability calculator or connect with an Arizona-based Home Lending Advisor to see how today’s rates fit your budget.

In summary

Whether you’re buying a home in Phoenix or refinancing in Tucson, partnering with an Arizona-based Home Lending Advisor can make all the difference. They can help you navigate current mortgage rates, explore various loan options and tailor advice to match your financial goals. With local expertise and a clear plan, you’ll be empowered to take the next step toward homeownership or refinancing—on your terms and with confidence.