Arizona Mortgage and Refinance Rates

Current mortgage rates in Arizona

As of Thursday, September 26, 2024, current interest rates in Arizona are 6.66% for a 30-year fixed mortgage and 5.93% for a 15-year fixed mortgage.

As of July 2024, median home prices in Arizona had climbed by 1.8 percent versus July 2023, according to Arizona Realtors. However, the current median sales price of $435,000 in the state is a decline from the previous month, and mortgage rates have been dropping, too. Some markets are also seeing significant inventory increases. Phoenix, for example, saw a year-over-year uptick of more than 50 percent in available single-family homes for sale, while the condo and townhome supply jumped by more than 80 percent. 

Refinance rates in Arizona

Refinancing your mortgage in Arizona doesn’t look nearly as appealing as it did in early 2021 when rates were below 3 percent. However, because home values have also risen, many Arizona homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of that surge in value to help further your financial goals. 

In addition, if you locked in your mortgage rate in 2023 or early 2024, you might want to keep an eye on refinance opportunities soon, as mortgage rates ease. Many people have already been taking advantage of the opportunity: Nearly 4,000 homeowners in Arizona refinanced in June 2024, according to ATTOM Data.

Arizona mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to begin to ease going into the fall, including in Arizona. Remember that rates change frequently, and fluctuations can happen in response to several market forces and Federal policy. 

If you’re looking to buy a higher-priced property in Arizona, that inventory is inching closer to a balanced market. Data from Arizona Realtors showed supply above five months for properties listed above $750,000 in July.

If you’re looking for a smaller space, then you might consider a condo or townhouse. The median sales price for these properties dropped by 1.8 percent year over year, and they spent significantly longer on the market — a median of 67 days versus 53 days in July 2023.

National mortgage rates by loan type

Mortgage statistics for Arizona

While Arizona may be known for hot temperatures, the state’s housing market has been slowly cooling off after a runup during the pandemic. In July, available inventory climbed by more than 28 percent versus July 2023, while the number of sales only increased by 1.7 percent. As you begin your house hunting journey, here are more statistics about housing in the state:

• Average home age and size: 33 years; 1,989 square feet
• Median home sales price, July 2024: $435,000
• Median down payment, June 2024: $72,725
• Homeownership rate, Q4 2023: 69.7% 

Sources: ATTOM, Arizona Realtors, U.S. Census Bureau

Mortgage options in Arizona

More than 73,000 properties have been sold in Arizona so far in 2024, according to ATTOM Data. For those that weren’t purchased with all cash, here are some of the common loan options:

• Arizona conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) as well.
• Arizona FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
• Arizona VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.
• Arizona USDA loans: If you’re buying a rural property in Arizona, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.
• Arizona jumbo loans: If you’re planning to buy a luxury property and need to borrow a large sum to make it happen, you may need to explore jumbo loans. Since you’re borrowing more money, be prepared to have good to excellent credit and a down payment of at least 10 percent of the purchase price.

First-time homebuyer programs in Arizona

HOME+PLUS Home Buyer Down Payment Assistance Program

Arizona’s HOME+PLUS mortgage program connects homebuyers in Arizona with a 30-year, fixed-rate conventional, FHA, VA or USDA loan, along with down payment assistance of up to 5 percent. You don’t need to be a first-time homebuyer, but you’ll need to meet other criteria, including:

• You’ll need to be buying a home (existing or new-construction) that’s either a single-family house or duplex, condo, townhome or manufactured property. You can’t buy a three- or four-unit property through this program.
• Your income can’t exceed county loan limits.
• You’ll need a 640 minimum credit score or up to 680, depending on your debt-to-income (DTI) ratio and loan program.
• You’ll need to complete a homebuyer class.

Home in Five Advantage Program

For homebuyers in Maricopa county, the Home in Five Advantage program offers up to 6 percent of the purchase price for down payment assistance. This comes in the form of a three-year forgivable second mortgage that only must be repaid if you sell or refinance within three years. To qualify, you’ll need:

• A credit score of 640 or better
• An annual income of up to $138,600
• Debt-to-income ratio of up to 50 percent
• To occupy the home as a principal residence within 60 days of closing
• To complete homebuyer education

An additional 1 percent of assistance is available for low-income borrowers, teachers, first responders and U.S. military service members and veterans.

Tucson and Pima County down payment assistance

For those buying in Tucson and Pima counties (excluding Tribal lands), there’s a local down payment assistance program offering up to 20 percent of the purchase price. To qualify, you’ll need to contribute at least $1,000 of your own money, have three months of mortgage payments in reserves, meet financial requirements and buy a house within the purchase price limits.

How to find the best mortgage rate in Arizona

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Learn more: How to get a mortgage

Additional Arizona mortgage resources

• Arizona loan limits by county: Learn the conforming loan limit for your city or town in Arizona.
• Arizona mortgage lenders: Explore mortgage lenders in your state.
• Arizona housing market overview: Know what to expect as a homebuyer or seller in Arizona.
• How to buy a house in Arizona: Get set up for a successful house hunt with this guide.
• Cost of living in Arizona: Get a sense of how much you’ll spend or save.
• Homeowners insurance in Arizona: Compare policies from a variety of providers.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards