2.2.23
Why is it a good time to buy? Prices have settled especially in metropolitan areas like Albuquerque. Buyers have more power to negotiate!
Yes rates are higher than they were last year however we have special ways of structuring loans to pad the higher rates. For example, we can do a 2/1 buydown where the rate will be 2% lower than market the first year and then 1% lower the second year. The idea is that hopefully rates will come down in the next 3 years at which point you could refinance into lower terms. The savings for this feature is paid by the seller so your realtor would need to negotiate a seller concession to cover this.
I hope this information is helpful to encourage new home buyers in the current climate.
Please reach out if you have questions
10.15.22
Fall is in the air. The aspens are losing their yellow leaves and the cottonwoods are beginning to change. If you haven’t gone for a walk outside lately, it’s the perfect time to do so. A family hike is the best medicine for stress and anxiety which I know many are feeling right now.
2022 is very different than 2021 in terms of mortgage banking. Rates have gone from 2.75 % to 7.25% in the matter of a year. Buyers are hesitant to buy in this market, however, rents are higher than ever with landlords continuing to raise even higher. As much as this seems like the most inopportune time to buy, we know rates will go back down in the future and there is always the option of refinancing. Buyers can refinance in as soon as 6 months after their first mortgage payment, so there is always the option if rates go down as soon as the spring which I believe is very possible.
The other benefit to buying a home right now is less competition and more negotiating power when making an offer. The ball is in the hands of the buyer since sellers are sometimes waiting 30 or more days for an offer.
As a licensed broker/loan officer, I would be happy to chat about your needs and what makes sense in terms of buying now or later. Please call or email with questions.
