Realistically it would seem that it was only a matter of time until the Arizona mortgage delinquency rate dropped. However, it’s important to note that it has dropped below the national average, which is a great sign for the overall health and vitality of the Arizona real estate market.

Arizona now ranks as the ninth lowest mortgage delinquency rate in the country. The average ‘non-current’ rate (the percentage of Arizona mortgage holders who are behind on their payments) has dropped to 6.4 percent for the month. The national average currently sits at 10%. What’s more pressing is that the national average of non-current mortgages didn’t drop as much as those in Arizona year over year.

This is a positive sign that homeowners are getting a better handle on their mortgages because of economic growth that continues to be slow, but steady.

Still One More Hurdle To Overcome

There is still one more problem that Arizona mortgage holders will need to work through and that is having a mortgage that is worth more than the current assessed value of the home. Commonly referred to as being ‘underwater,’ the national trend has shown that many regions throughout the country have improved in this area and the homes that people own in these regions are now worth at least what they owe, or more.

In Arizona, as well as Florida and California, the housing market has been a bit more stubborn in recovery mode and the value of properties in these states are still averaging below what many homeowners still owe on their mortgages. While this may seem as though the Arizona market is not fully recovering yet, we need to take other factors into consideration. The new Arizona mortgage application rate continues to climb, which means more buyers are entering the market. With more buyers, there will be more interest in homes which will drive the values back up.

Secondly, as fewer people are behind on their current mortgages, that means lending will likely begin to increase, especially on the heels of more incentive from major financial lenders to offer loans to qualified applicants.

Every bit of positive news that we hear about with regard to the Arizona mortgage market, it signals a stronger recovery. What does this mean for you? If you have been considering buying a home in Arizona, if you are in the market for one, you will likely never see a better time to buy than now. With home prices still lower than average, interest rates at historic lows, though showing signs of moving up, and more homeowners keeping up with their mortgage payments, it’s the perfect recipe to buy the home of your dreams.

So take advantage of this unprecedented opportunity. If you want to know more and have someone on your side who will explain the details you need to know, who has your best interest at heart when you apply for your Arizona mortgage, then contact a qualified broker. It will be the most valuable phone call you will make.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

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