It’s only April, and all the expert predictions about mortgage rates staying in the high three percent range for 2022 were wrong! Freddie Mac announced the end of March rates for a 30 year fixed mortgage were already at 4.72%. Then, Danielle Hale, the Chief Economist at realtor.com tweeted on March 31st, mortgage rates would be 5% in a matter of weeks… And then, just a few days ago, on April 5th, the Mortgage News Daily quoted a rate of 5.02%!
Historically, lower mortgage interest rates and full employment helped moderate the impact of rising home prices. Yet, even as rates increased in the first quarter of 2022, we may know the impact on rising home prices until May or June, as more consumers continue to struggle with finding a property that fits their financial comfort level.
Now, while no one really knows, the expects are now saying rates are heading up without any further predictions. If you are looking to buy a home in Santa Fe or northern New Mexico and you will need a mortgage; as rates rise, your home will cost you more. And, if you are thinking about selling, it makes sense to not sit on the fence either. Why? We do not know how continued rising mortgage interest rates will impact the buyer demand for your home.
Bottom Line: Whether you are a Seller or Buyer, April is not the time to sit on the fence. It is important to find out now how rising rates will impact your next more, real estate decision or investment. Yes, situations and solutions vary. Why not take a moment and call or text me, Emily Medvec at 505.660.4541 for a brief consultation about YOUR situation and YOUR options in this different world of Santa Fe real estate.