Market Insights
Peak into local and national economic factors impacting the real estate market in the Phoenix metro area.
Last Updated December 4th, 2024
Current National Mortgage Interest Rate Trends
As of December 4, 2024, the average interest rate for a 30-year fixed mortgage is 6.80%, a decrease of 16 basis points from the previous week. The national average rate for a 30-year fixed refinance is also 6.80%, down 18 basis points, while the 15-year refinance rate has dropped to 6.16%. Despite recent Federal Reserve rate cuts, mortgage rates have been rising recently, largely due to the economic effects of President-elect Donald Trump’s victory and anticipated tax cuts. Economists predict mortgage rates could continue to ease down in 2024.
Demolition Begins at Metrocenter Mall as Plans Unveil for New Urban Village 'The Metropolitan’
Demolition has begun at Metrocenter mall to make way for a new urban village called "The Metropolitan," which will include residential and retail spaces. The development will feature 1,200 to 2,000 housing units, a light-rail hub, and public amenities like pickleball courts, event spaces, and a restaurant. The project also plans separate retail buildings and a vibrant community with desert landscaping and space for public events. While negotiations for the acquisition of the former Sears site are ongoing, developers expect the entire project to take three to four years to complete.
Shea Homes, Lennar, and Toll Brothers Partner to Develop 700 Homes on 300 Acres in Peoria
Three major homebuilders—Shea Homes, Lennar Corp., and Toll Brothers—have purchased nearly 300 acres of state land in Peoria to build 700 homes. The trio was the sole bidder at an Arizona State Land Department auction, securing the land for $46.89 million. The development will consist of around seven communities, with Lennar taking over a third of the site, and Shea Homes and Toll Brothers splitting the rest. The project is expected to benefit from the area's growing job market, particularly with the nearby Taiwan Semiconductor Manufacturing Co. plant, and is projected to begin home sales in late 2027 or early 2028.
BNSF Railway has requested a delay in the vote for its $3.2 billion rail complex as it continues working on zoning approvals with Maricopa County. The company plans to develop a 4,300-acre hub for freight transport and a logistics center in metro Phoenix, with construction set to begin in 2025. However, the project has faced opposition from local residents concerned about its im.pact on traffic, the environment, and water resources. BNSF has proposed postponing the vote until March 2025 to allow more time for community meetings and further discussions on the project’s potential effects.