Albuquerque Interest Rates: The Fastest Increase Ever Over the Last Few Months!
Transcript Snippet: “Eddie:
Interest rates. We haven’t seen them. We haven’t seen them jump. We’ve seen them rocket up. Yeah. Never like it. We, we were waiting for this five, six years ago, I think. Yeah. I think the rates are gonna come up next month. That was it. We finally got to a point where we just stopped talking about interest rates altogether.
Tego:
Yeah, yeah. It, it it’s. Yeah, it, I, I, you know, the, the stat is something like, you know, the, the fastest rate of increase in mortgage rates ever, you know, over, you know, the last few months. So we went from 3%, let’s say at the end of last year to now, you know, five and a half, you know, 6%, you know, people with maybe not the, the greatest credit scores, you know, 6% plus now. And you know, we’re starting to see rate, buy downs again, where, you know, it used to not make sense to do a rate buy down. So that’s where you, you know, pay a little extra money up front to get your rate a little bit lower. Now people are doing that. The thing that’s interesting Eddie is, I don’t know, you, you follow the 10 year, right? Kind of the bond market a little bit you know, the 10 year just rocketed up.
Tego:
And if you look at the 10 year bond versus mortgage rates, they always correlate, right. They kind of follow each other and the 10 year just went through the roof. But now it’s pulled back now in the last few weeks, which have brought interest rates back down again, some people in the housing economy world, or the housing economist, they, they would like to see these rates stay elevated for quite a while to help slow down this market. And here, let me, I wanna, I wanna point something out. I think it’s interesting, this kind of big picture housing what’s going on. People that are refinancing their home, they look at interest and they say, yes, you know, I’m gonna time this, and I’m gonna get the very best interest rates so that I can reduce my costs. A ton of people did that over the last few years.
Tego:
I mean, huge, huge number of people refinance their property or properties over the last couple years, because we, again, we were in this 3% ish mortgage rate world. And the thing is when people are purchasing a home, they don’t make a decision to purchase a home on what the interest rate is today. They make a decision for the most part on what they need in their lifestyle at that time. And they more look about, well, can I afford it? Or what can I afford? Based on the current interest rates in my per situation than, you know, well, I’m not gonna buy because interest rates are too high. If you can afford it and you need a house you’re still gonna buy the, the, the people that it’s, that it’s doing is it’s pushing out the people that were, you know, kind of at the margin, maybe lower, you know?
Tego:
And, and so now we’ve had this home price appreciation where, you know, a home under $250,000 in the Albuquerque area is, is a rarity now. And we’ve got these interest rates that have gone up so much. And so now that’s just pushed a whole bunch of people out of the market from an affordability standpoint. It’s not like they don’t wanna buy, they just can’t, but there’s still a bunch of people that can buy and are gonna buy. And they’re not gonna just say, well, I’m not gonna buy because interest rates are too high. That was a long, that was a long thing. But did that make sense?
Eddie:
Yeah, it does. And I think the decision matrix for buyers is, is moving and that the problem that, that has created is the very thing that you from the very beginning, which is it’s unaffordable. Yes. So you have housing problem, and you’ve about that. This that’s, Symphony’s the purpose of a home Maslow’s theory, hate basic needs. Yeah. Right in there is shelter, shelter,
Tego:
Security, and, and, you know, I, I always throw in and I know Tracy definitely always throws in, you know, a home is about making memories with your family. Right. And, and that’s, you know, and, and, and, you know, you, we, we talk to people all the time, Eddie that are like, you know, I’m just tired of being a tenant. If I want to plant some flowers in my yard, I want to do that. Right. If, if I want to paint my room orange, I’m gonna do that. Right. As opposed to being a, a tenant or living with your parents
Eddie:
Yeah. I think, I think what realizing though, is back to the movie at margin and we’re seeing a change. And so you just went through an entire decision matrix for the buyer, and then you as a someone who owns several pieces are in the better, best position that you ever built in, been in, and you can allow these people to sort of fit up, but is still same thing as we’re still satisfying, a basic need. Their trade off is a lot more than yours was when you acquired that’s here’s the lesson. Is it better to, well, everyone’s trying to own the reason why is the reasons of the basic needs. And we’re about to hit this crisis time economic crisis time. And who’s gonna be able to get through this without getting sick, developing cancer. I don’t know, getting, having to have 3, 4, 5, 6, 7, 8 jobs or having to live hand to mouth like a home is security.
Eddie:
A home is memory. The home is life, and this is why you need to be into home. And if you wanna go ahead and have this sort of more detailed conversation, the best people I could possibly give to you to do so, or Tego and vent the vent team from Keller Williams Realty, you pick phone, you dial them directly 5 0 5, 4, 4 8, 8, 8, 8, 8 that’s five eight helped me out with something yesterday. Just because understanding things like mortgage title all the various components of the transaction, and then having, you know, it’s not just enough to put in an offer, but if you put in your offer with their name, or if you list your property with their name, you know, a it’s priced, right. And B it’s a strong offer if they’re gonna do it, and they’re advising you the right way, there’s such a thing as trust. And the last thing that we have right now in society, I think even here in Albuquerque, overall, I just went through something which was God awful is trust. And you have to have that trust. That’s exactly what the Realty group means. And that’s something that I wanna communicate to.