Mortgage Rates rose over 83 Basis Points in just over a month. On a $500,000 Mortgage that’s $40,000 in Purchasing Power that just disappeared. That’s going to impact pricing moving forward.

Mortgage rates have moved sharply higher over the past month and the impact on homebuyers is bigger than the change in the rate might suggest. For buyers, that translates directly into higher monthly payments and reduced purchasing power. For sellers, it means the pool of buyers who can afford their home or who perceive their home as a good value, may have changed dramatically in only a matter of weeks.

The Phoenix Luxury Segment is not impacted by interest rates like the Normal Market is. As we go up in price a higher percentage of the transactions are Cash Sales. As we go down in price more are financed.