The average 30-year fixed-rate mortgage rate in Arizona is moving close to the national average, at 6.71 percent, according to the most recent Freddie Mac Primary Mortgage Market Survey, dated September 3, 2026.
Arizona borrowers with a strong credit score and a 20 percent down payment typically receive a rate within a few basis points of that number, while FHA and VA loan rates in the state are slightly lower.
To see the most up-to-date rates, our mortgage interest rates page is updated daily as new quotes are pulled from a network of lenders.
What factors are currently driving mortgage rates in Arizona?
Rates have been falling for most of 2026 from their two-year highs, and Federal Reserve policy is a major reason for that.
This policy path has affected mortgage pricing over the past two years, according to the Congressional Research Service, and each Fed meeting can still change rates within days.
In Arizona, the local market has calmed down compared to the turbulent 2021-2022 market, but the market is not stagnant.
Zillow reported the median home value statewide at $421,381, down 1.4 percent from a year ago.
Separately, Realtor.com data shows the median listing price across Arizona in April 2026 was $468,000, down 3.5 percent from a year ago. The average number of days a home is on the market has also increased to 57 days, giving buyers more time to negotiate closing costs and buy points to lower interest rates than they did two years ago.
Arizona Mortgage Rates by City: Phoenix, Tucson, Scottsdale, and the Valley
The interest rates themselves don’t typically vary much between cities, as Freddie Mac and most lenders set rates at the state or national level. But the price of the property you’re borrowing against varies, and that will change your monthly payment by much more than a quarter-point difference in interest rates.
Phoenix is close to the state median in terms of price, with Cromford‘s report projecting the median sales price in the greater Phoenix area to be about $458,000 by March 2026.
Tucson is significantly less expensive. A Resideline analysis of completed transactions put the median price in Tucson at $339,000, about 19 percent lower than the statewide figure. That’s one reason why searches for mortgage rates in Tucson have been on the rise, even though interest rates are similar to Phoenix.
Scottsdale is a different story, pushing state averages higher. The same Resideline dataset puts the median price in Scottsdale at about $904,000.
Mesa, Chandler and Tempe are in the middle. Resideline data shows that home prices in Chandler are around $500,000 and in Mesa around $400,000, though those numbers vary by neighborhood and school district.
The price difference is more significant than many people realize. A half-percentage-point difference in interest rates on a $900,000 loan in Scottsdale changes the monthly payment by about $280, while the same half-percentage-point difference on a $340,000 loan in Tucson changes the monthly payment by about $105.
Types of Mortgages Available in Arizona
FHA Loans: These loans are backed by the Federal Housing Administration and are a good option for first-time homebuyers who have lower credit scores or less savings for a down payment. Mortgage insurance is required both initially and annually.
Conventional Loans: These loans are not backed by the government, so credit and income documentation requirements are usually stricter. If the down payment is less than 20 percent, private mortgage insurance (PMI) is required.
Conforming Loans: These are conventional loans that fall within the amount limits and credit requirements set by Fannie Mae and Freddie Mac.
Jumbo Loans: These non-conforming loans are common in areas like Scottsdale and Paradise Valley, where home prices often exceed the conforming loan limits. These loans typically have stricter collateral requirements.
VA Loans: Available to eligible veterans, active duty military personnel, or surviving spouses. These loans require no down payment or private mortgage insurance, although they do include a funding fee.
USDA Loans: Designed for low- to moderate-income buyers in eligible rural areas of Arizona and require no down payment.
How to Improve Your Rate and Chances of Approval in Arizona
Your credit score has more impact than almost any other factor on this list.
Lowering your outstanding balance and fixing errors on your credit report before you apply for a loan can move you up to a better pricing level and save you significant money over the life of your loan.
A higher down payment lowers your loan-to-value (LTV) ratio, which lenders often reward with a better rate. Also, with a down payment of more than 20%, you no longer need private mortgage insurance (PMI).
It’s also important to have a stable job history for two years, as well as a debt-to-income (DTI) ratio that you’ve actively reduced, rather than hoping the lender will ignore it.
Getting pre-approved before you start your home search will establish your true budget and show sellers, especially in competitive listings in Scottsdale or Gilbert, that your offer is serious and not just a make-believe offer.
Working with an Arizona mortgage broker who will review and compare your case across multiple lenders, rather than a bank that only offers its own rates, is often more valuable than trying to get an eighth of a percentage point better interest rate on your own.
Finding the Right Mortgage Program for Your Arizona Home Purchase
Mortgage Shop specializes in conventional mortgages, DSCR loan programs for investment properties, and No Doc options for self-employed borrowers whose tax returns don’t reflect their actual cash flow.
Our mortgage education program explains the mortgage process in plain language to customers, including the difference between a mortgage broker and a mortgage banker and how that difference can affect the interest rate you’re offered.
If you’d like your case to be reviewed across our network of lenders rather than just being quoted by a bank, our team can run your numbers and terms.
