Home Loan Interest Rates Decline

How is the market???

Everyone wants to know, apparently. Some people, perhaps out of kindness, follow that question up with something that goes like this, “I mean, are you selling houses???”

But what we suspect most home owners are yearning to find out is what the local pricing trends are doing so they can have some idea of what their home value might be doing.

Well, unfortunately, the annual report from the realtor association has yet to surface. However, we’ve included a graph below that shows home prices over the last decade in Albuquerque, which is interesting and surely worth a look. If you’d like to know specifically what a home, any home, is worth, we are happy to do a market analysis for you upon request. There is never a fee for this, it’s what we do, and do well. So while we wait impatiently to post a write-up about the market based on the annual report, we’d like to shed some light on some good news about interest rates.

Many people have attempted to predict for years now when the helium balloons of interest rates will be untied, sending rates floating skyward until they reach more normal levels again or (gasp) perhaps until they reach 1980’s levels (plus 10%, ouch!) And last year, interest rates did go up a little, to 4.5%. Many** people thought rates had seen their best days behind them. But near the end of the 2014, as gas prices eased and we found ourselves fueling up two tanks for the previous price of one, interest rates followed in the same downward trajectory.

In early December, rates fell below 4% and the current rate on a 30 year fixed is now 3.8%! This is only the second time since John Kennedy’s presidency that the rates have been below 4%, and that’s pretty exciting whether you’re thinking of buying or selling. While we can’t count on the cost of rent, food, healthcare or education to be fixed for the next 15, 20 or 30 years, we have the opportunity to secure a house payment that is.

Albuquerque Home Prices
Albuquerque Home Prices

In early December, rates fell below 4% and the current rate on a 30 year fixed is now 3.8%! This is only the second time since John Kennedy’s presidency that the rates have been below 4%, and that’s pretty exciting whether you’re thinking of buying or selling. While we can’t count on the cost of rent, food, healthcare or education to be fixed for the next 15, 20 or 30 years, we have the opportunity to secure a house payment that is.

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