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Mortgage rates in Arizona

Rates at slightly higher than the national average since 1997.

Updated

Fact checked

Mortgage rates during the coronavirus

As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.

Compare mortgage lenders in Arizona

Consider how mortgage rates are trending for 2020 to get a low rate on your new home in the Grand Canyon State.

How much do Arizona rates vary by loan?

Average mortgage rates in Arizona for a 30-year fixed-rate mortgage can vary from 4.679% to 5.034%. Lenders weigh many factors when calculating your mortgage rate, and rates depend on the kind of loan you qualify for. For example, conventional loans generally come with higher interest rates than VA loans.

Let’s say you borrow $165,000 with a 30-year mortgage. The average 5.025% for a conventional loan might run you $888.28 a month, excluding taxes and other fees specific to your mortgage. If you were eligible for a VA loan at an average rate of 4.679%, you might pay $853.67 a month.

Although it is a difference of only $34.61 a month, it could save you $12,458.68 over the life of your mortgage.

2018 average rates in Arizona by loan type

Loan type15-year average rate30-year average rate
Conventional4.337%5.025%
FHA4.276%5.034%
VA3.998%4.679%
USDANot available4.731%

Based on data from ffiec.cfpb.gov.

Mortgage rates in Arizona have trended slightly higher than the national average since 1997.

National housing agencies like the Mortgage Bankers Association, Freddie Mac and Fannie Mae predict that interest rates will average about 3.70%. Although mortgage rates may rise and fall slightly, Arizona rates are expected to stay around or below 4%.

Compare mortgage rates throughout Arizona

Mortgage rates and home values in Arizona vary by geographic area. So, borrowers in neighboring cities may pay different amounts for their home loan.

We analyzed data from the Home Mortgage Disclosure Act to break down what you might pay on the average 30-year fixed-rate mortgage, depending on where you live in Arizona. This amount does not include taxes, fees, PMI or costs unique to your mortgage.

Metropolitan statistical areaAverage mortgage rateMedian loan amountEstimated monthly cost
Flagstaff4.976%$275,000$1,472.23
Lake Havasu City-Kingman4.955%$165,000$881.22
Phoenix-Mesa-Scottsdale5.017%$235,000$1,263.97
Sierra Vista-Douglas4.873%$145,000$767.18
Tucson4.844%$185,000$975.56
Yuma4.945%$155,000$826.87

Based on data from ffiec.cfpb.gov.

How to get the best mortgage rate in Arizona

To secure the lowest interest rate for your home loan, shine up your credit and weigh full costs when shopping for a lender:

  1. Compare mortgage types. Look for loans with rates and terms that you’re eligible for. For instance, conventional loans generally come with higher interest rates than government-insured options, but fewer borrower and property restrictions.
  2. Boost your borrowing potential. Pay down as much of your existing debt as you can to improve your eligibility for the strongest rates.
  3. Consider closing costs. Lenders charge fees that range from 1.15% to 1.74% of your home’s purchase price to close on a loan in Arizona.

Historical mortgage interest rates in Arizona

Bottom line

Mortgage rates in Arizona sit just above the national average but also depend on factors that include your property’s location and cost. Because lenders set their own rates, compare at least two mortgage lenders to get an idea of APRs, closing costs and loan programs you might qualify for.

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