Arizona mortgage and refinance rates

As of Monday, September 28, 2026, current interest rates in Arizona are 7.38 percent for a 30-year fixed mortgage and 6.75 percent for a 15-year fixed mortgage.

Mortgage rates in Arizona, like mortgage rates nationally, have fallen from their post-pandemic peak — but they're still well above the historically low COVID-era rates homebuyers saw in 2021 and 2022. Experts expect rates to remain between 6 and 7 percent in 2025. However, economic uncertainty could cause rates to move more drastically. 

Refinancing your mortgage in Arizona doesn’t look nearly as appealing today as it did a few years back, when rates were below 3 percent. However, if you locked in a rate between 7 and 8 percent within the last year or two, now might be a good time to lower your monthly mortgage payment. 

More than 5,350 homeowners in Arizona refinanced in August, a 2.6 percent increase year-over-year, according to ATTOM Data Solutions.

Also, because home values in Arizona have risen in the past few years, many Arizona homeowners have equity they can tap. With a cash-out mortgage refinance, you could take advantage of that surge in value to help further your financial goals.

Elevated mortgage rates and high home prices continue to make home affordability an issue. Arizona's median sales price is a bit higher than the national median, although it has stabilized after rapid increases over the past few years. Inventory is up in the state, which might ease competition for homes.

• Median home sales price, August 2025: $440,000
• Median home value, August 2025: $434,739
• Median down payment, July 2025: $68,500
• Median days on market, September 2025: 71
• Percentage of homes sold above list price, September 2025: 13.6%
• Percentage of homes with price drops, September 2025: 27.9%
• Homeownership rate, Q2 2025: 72.3%

Sources: Redfin, ATTOM, U.S. Census Bureau

If you're shopping for a mortgage in Arizona, these are some of your loan options:

• Arizona conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of 45 percent (with some exceptions up to 50 percent). If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI).
• Arizona FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a credit score of at least 580, you could qualify for a down payment of as little as 3.5 percent.
• Arizona VA loans: If you’re a veteran, active-duty member of the military or a surviving spouse, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t typically require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 3.3 percent of the loan amount for purchases.
• Arizona USDA loans: If you’re buying a rural property in Arizona, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.
• Arizona jumbo loans: If you’re planning to buy a luxury property and need to borrow a large sum to make it happen, you may need to explore jumbo loans. Since you’re borrowing more money, be prepared to have good to excellent credit and a down payment of at least 10 percent of the purchase price.

Home Plus and Arizona Is Home programs

Arizona’s Home Plus and Arizona Is Home programs connect homebuyers with a 30-year, fixed-rate loan, along with down payment assistance of up to 4 percent. You don’t need to be a first-time homebuyer but there are other criteria, including:

• Your income can’t exceed specific limits.
• The Arizona Is Home program isn't available in Pima or Maricopa counties.
• You’ll need to complete a homebuyer class.

Home in Five programs

For homebuyers in Maricopa county, the Home in Five programs offer down payment assistance and loans with competitive interest rates.

Tucson and Pima County down payment assistance

For those buying in Tucson and Pima counties (excluding Tribal lands), there’s a local down payment assistance program offering up to 20 percent of the purchase price. To qualify, you’ll need to contribute at least $1,000 of your own money, have three months of mortgage payments in reserves, meet financial and other requirements and buy a house within the purchase price limits.