Accurate transit arrival time prediction is a critical factor for improving the quality of transit services. A significant factor that can affect transit arrival times is the other vehicles traveling on transit routes, as transit arrival time is significantly affected by traffic conditions. However, few previous studies considered traffic condition impacts in transit arrival time prediction due to a lack of real-time traffic data, reducing the accuracy in predictions under varying traffic conditions. To fill this research gap, crowdsourced speed data with wide coverage is utilized to indicate traffic conditions and to predict transit arrival time in conjunction with General Transit Feed Specification (GTFS) data. Interaction Networks (INs) are employed to model the interactions between transit speed, dwell time, and traffic speed for arrival time prediction. The proposed method only uses limited historical data and can predict arrival time at stops along a transit route. Ten days of data were collected from bus route #4 in Tucson, Arizona to evaluate the performance of the proposed method. The evaluation results show the average mean absolute percentage error (MAPE) of predicted arrival time on weekdays and weekends is 13.5% and 14%, respectively, indicating that the proposed method is promising for predicting transit arrival time while considering real-time traffic conditions. Furthermore, six traditional methods are compared with the proposed method, and the comparison results show the proposed method outperforms the other six methods.