One of the big questions in real estate at the moment is when will the recent falls in mortgage rates stop?
As ever, there's no silver bullet answer, but we have seen lowering rates for some weeks now.
And last week saw rates falling to the lowest levels so far in 2017.
There are a range of influences behind this recent downward trend, led by increasing investor concern over the uncertainties created by recent events in Syria and North Korea.
This has seen a recent return in popularity of safe-haven investments including Mortgage Backed Securities (MBS). And because mortgage rates are so closely related to MBS prices, they have continued to travel south of late.
What's happening right now is more or less a repeat scenario that we've seen playing out several times before in recent years.
While consumer confidence and jobs optimism continue at elevated levels,major international events and circumstances are again making MBS a more attractive option, in comparison to riskier investments.
And, as has happened many times in the recent past, we're seeing this working in favor of lowering mortgage rates at a time when they arguably should be moving in the opposite direction, were it not for these factors.
Yet again, we're witnessing that mortgage rates are, in fact, very influenced by world events. It's entirely true to say that what happens on the world stage often has a pretty direct impact on the home loan interest rates you are offered by lenders. More so, in fact, than the recent Fed interest rate rises, which have a far less direct effect.
What this means for home buyers is that rates, which were already very competitive on any historic scale, are even better right now. For sellers, it's an even bigger incentive to list at a time when buyer demand is already high and there is short supply of homes across all sectors in the Albuquerque area. It's actually a win-win for everyone concerned, but will it last...
Why not contact us today and discuss how to make the most of the current situation.