Interest Rates: Quick projections for Albuquerque’s Real Estate market
(Transcript Snippet): “Tego:
Yeah. Anyway, so Hey, real quick, Eddie. So projections, quick, quick projections, Eddie on interest rates. Chris, what are we, what are we looking at?
So here here’s the reality. We talked about tapering. The feds are gonna start to throtle back on how much they’re purchasing as far as mortgage back securities, before they started doing that. And before the COVID effect, as Tego mentioned, we were in the 4% range, the three and a half years ago, my, my interest rate on my mortgage was 4.75, but just as rates had cooled off a bit, but then before the COVID effect, we were around that 4% mark. And so if we simply just go back once the feds taper off and back off on buying mortgage back securities, if we just end up where we were, that’s, that’s a 4% interest rate. So I mean, really that’s the best projection that I can give is, you know, the feds taper, they stop buying mortgage mortgage backed securities. We go back to where
We were and that, that’s what I’m hearing from all the, you know, air quote experts you know, in the, in the space is, you know, for, you know, maybe just, just 4% by the end of next year.
And, and maybe if the feds do a couple of, of these rate increases, which again, this is overnight rates, banks, lending money to banks. So they’re not raising mortgage rates by a quarter of a point, but if they have a couple of those bumps, it does have some spillover effects. Some of it’s psychological that might, that might push us a little further, but I just think we end up back up where we were and then things go from there. But I, I, I see over the next two to three years, no, no reason that inflation or things aren’t gonna keep us trending upward in, in interest rates. Keep it in mind when we were two and a half percent on a 30 year loan, our economy was in a bad way. Yeah, it was, it was a bad place to be. We, we probably don’t want those again. We don’t want that again. <Laugh>