Real Estate A Historical Journey Through 30-Year Fixed Mortgage Rates

By Frank May, Real Estate Agent

In Peoria, the story of 30-year fixed mortgage rates is not just a reflection of national economic trends, but also a narrative deeply intertwined with local real estate dynamics.

This journey, since its tracking began by Freddie Mac in 1971, has seen rates as high as 18.63% in 1981 and as low as 2.65% in 2021.

The 1970s saw mortgage rates start at 7.5%, escalating and fluctuating throughout the decade. The 1980s were marked by economic upheavals, with rates peaking early and then stabilizing around 10% by 1988. By 2003, rates in Peoria, like the rest of the nation, had declined to the high 5% range, and the 2009 recession pushed them further down to 5.04%.

In Peoria, these shifts were mirrored in the local housing market. The historic low rates during the COVID pandemic led to a surge in home buying, while the recent climb above 8% has cooled the market, changing the dynamics for homebuyers.

Prospective buyers and homeowners in the area are now navigating this complex market. With predictions pointing towards a potential rate decrease in the coming year, it’s a critical time for real estate decisions in the area.

For Peoria residents, understanding these fluctuations and their implications is crucial. Lower rates typically mean more affordable borrowing and a vibrant real estate market, while higher rates can lead to decreased demand and a cooler market, with more negotiation power for buyers.

PROS OF BUYING NOW:

• Anticipated future rate decreases could lead to more affordable mortgages.

• Current market conditions offer a wider selection of homes and less competition.

CONS OF BUYING NOW:

• Higher mortgage rates mean increased borrowing costs.

• Uncertainty in rate movements poses challenges for financial planning.

As an experienced professional in Peoria’s real estate landscape, I understand the complexities of navigating the market, particularly during times of fluctuating economic conditions. My role is to provide you with the expert guidance necessary to traverse these everchanging waters.

Peoria’s housing market often reflects broader national trends, yet it is the local nuances and informed insights that truly guide successful real estate endeavors in our community. Whether you are looking to buy, sell, or simply explore your options in the area’s dynamic real estate market, a deep understanding of history and current trends is crucial. My commitment is to ensure that you are well-equipped with the knowledge and expertise needed to make informed decisions, helping you achieve your real estate goals.

Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.

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Uniting Generations: The mutual rewards of volunteerism

Photo courtesy of Benevilla

Volunteerism bridges communities, offering diverse benefits to those who give their time and those who receive it. This is particularly true for military personnel, retirees, and dependents, who find unique value in serving their communities.

Volunteering creates a meaningful connection with local communities, particularly supporting military families. It’s an avenue for skill developmentenhancing leadership, teamwork, communication, and problem-solving abilities. These skills are not only personally enriching but also valuable in civilian careers. Volunteering also provides a platform for networking, fostering connections across various backgrounds, which can lead to job opportunities and community integration.

AARP notes that 87% of seniors prefer to age in their own homes and communities. With the Baby Boomer generation aging, the demand for support services is increasing. Benevilla, a nonprofit established in 1981 in Surprise, addresses this need by offering varied volunteer opportunities, especially for senior care.

The Benevilla Free Home Services program exemplifies this commitment. It offers seniors assistance ranging from grocery shopping and medical transportation to wellness checks and minor home repairs, catering to those with limited resources.

In 2022, Benevilla’s volunteers significantly impacted the senior community: 847 medical appointment rides, 1,020 grocery deliveries, and over 48,807 acts of service, including home maintenance and companionship.

A seasoned Benevilla volunteer encapsulates the sentiment: “Volunteering is good for the soul.” Beyond the tangible help provided, volunteering enhances mental health, reducing stress, anxiety, and depression. It offers a sense of purpose and fulfillment, particularly for military families, fostering community spirit and continued service to the nation.

As a family services agency, Benevilla has been enriching lives in the West Valley since 1981, offering services for older adults, disabled adults, children, and families. Interested individuals can join Benevilla’s mission by calling 623-584-4999 or visiting benevilla.org.

Motoring Safety: DrivingMBA’s 20-year legacy of driver education

Photo courtesy of DrivingMBA

DrivingMBA celebrates 20 years of keeping teens safe on Valley roads. With two Valley locations, DrivingMBA is the only driving school in Arizona that offers a comprehensive program using a combination of simulation labs and on-road instruction to teach driving fundamentals and defensive driving skills to teens, and other drivers, across the state.

“Since opening in November 2003, our singular mission has been to provide teen drivers with the training and tools necessary to become competent, responsible and safe solo drivers,” says Maria Wojtczak, chief operating officer at DrivingMBA. “Our system is unlike any other driving program available in Arizona and the whole country.”

According to the U.S. Department of Transportation, more than 3,000 people are killed each year in car accidents involving a teen driver (aged 15 to 18 years old.) Driving is the single deadliest thing teenagers do every day.

“When my husband Rich and I started this business two decades ago it was a true passion,” says Wojtczak. “At that time, our daughter was in middle school and learning to drive was on the horizon. We were shocked at the lack of professional driver training and education needed to attain an Arizona driver’s license.”

Arizona’s high rate of red-light runners, road rage incidents and wrong-way drivers compounds the complexity of educating inexperienced drivers. DrivingMBA mitigates these dangers through its indepth training for teens that highlights skills needed to avoid these and other issues like distracted driving.

“Our goal was to develop a program that would ensure novice drivers were prepared for the many situations that come up daily when driving,” Wojtczak adds. “Driving has changed over the last 20 years, vehicles are faster, roadways are more aggressive, and the level of distraction today is significantly higher with all of the technology available in cars, cell phones and of course, social media.”

In 2021, DrivingMBA expanded to a second Valley location and now trains roughly 1,200 students each year in a variety of programs, including classes for adults, seniors, exceptional learners, and fleet drivers. The pinnacle of these options is the DRIVE Certification Training Package, a 30-hour course that is one of the most thorough teen training programs in the nation. Spread out over six months or more, it takes participants from permit to official license and includes 14 hours of driving in simulation labs, both driving fundamentals and defensive driving and a minimum of 10 hours of on-road training.

Additionally, DrivingMBA incorporates elements of partnering with parents of teens who play a key role in the total learning process.

“Over the years, DrivingMBA has invested more than half a million dollars in simulator equipment, some of which is used to train local police, firefighters, and truck drivers to be defensive drivers,” Wojtczak says. “It is all part of DrivingMBA’s effort to provide all drivers with the advanced training they need to return home safely each and every day.”

For more information, drivingmba.com.