Mortgage-free homeowners on the rise in Phoenix
Add Axios as your preferred source to
see more of our stories on Google.
Nearly 34% of Valley homes were owned outright in 2022, up from about 32% in 2017, according to the latest census data.
- That's compared with nearly 40% nationally, the highest share since 2005.
Why it matters: Some people aren't feeling the heartburn of higher interest rates and have more flexibility in their finances.
Driving the news: Many free-and-clear homeowners are baby boomers who refinanced their mortgages when rates were lower, Bloomberg reports.
Between the lines: There can be a psychological perk to paying off a loan early, but according to some personal finance experts, it could be smarter to invest that money instead.
- "If people derive some intrinsic happiness out of paying off their mortgage because it reduces their stress, then that has value," Michael Roberts, a Wharton School finance professor, tells Bloomberg.
What we're watching: Mortgage-rate humblebrags. Major forecasts predict rates will dip in 2024, but those 3%ers likely got the interest rate of a lifetime.