Mortgage rates are dropping fast. Will potential homebuyers jump at newly cheaper payments? Or, will they wait to see if rates drop further before taking action?
Mortgage rates today are now the lowest they’ve been in over a year. Last year at this time, mortgage rates were rising, eventually peaking at 8% in October 2023. That late year rise in costs really slowed our Santa Fe housing market. All year people were expecting rates to decline after the FED announcement in December 2023. Some experts have been assuming that if they dipped down to 6.5%, we’d see a pickup in demand. However, at the same time, I have seen so many price drops in our Santa Fe market along with an explosion of new inventory since January 2024, I have not been in that camp. I am more boots on the ground for the clients I represent, as well as a data nerd.
We’re now at a new mortgage interest rate threshold. The 30-year fixed rate is under 6.5%. And at the same time due to the jobs report last week and the major global stock market volatility yesterday, I am looking at any new shift and opportunities it creates. For example, will the drop in the Dow etc. keep reducing future cash buyers net worth? Will they now want to finance a purchase? Will the buyers who have been impacted by high inflation have sufficient downpayment and healthy credit scores to move forward? Have sellers who have been on the fence about selling still been able to maintain their home and make necessary improvements? All these variables do impact this major financial decision to buy or sell Santa Fe property.
Bottom Line:
Now is the time to evaluate the value of your property for a benchmark value so you can track plan for the future. It is equally important to evaluate your housing needs vs wants along with what you can realistically afford in a shifting market. Further, in my opinion, the seismic changes in the real estate process have added confusion to market with the changes in buyer broker representation following the National Association of Realtors (NAR) settlement. Lastly, this is a presidential election year which typically adds more uncertainity.
Hopefully, you will take me up on my offer of a consultation. There is no obligation and you may be surprised to learn you actually have options. Either call or text my cell at 505-660-4541 for an appointment. Thank you for reading. Emily Medvec