Homes For Sale Santa Fe, NM- Rates At A Glance

Mortgage rates dropped ever so slightly last week.  There are now differing opinions as to whether 30-yr rates will drop below 4% or bounce back up to mid-to- high 4’s.  The Federal Reserve put “Quantitative Easing” (“QE”) measures into place, starting in late Nov, 2009.  The QE measures, buying mortgage-backed securities (“MBS”), were their means of suppressing interest rates in order to stimulate the economy.  In early 2014, the Federal Reserve cautiously started to taper their MBS purchases with a plan to totally exit the QE3 (the third round of quantitative easing) by the end of 2014.  The effect of the Federal Reserve no longer purchasing MBS would, in essence, push interest rates up.

However, because of geopolitical tensions as well as continuing Euro-bank concerns, investors around the world are finding solace in the relative security of the U.S. mortgage market, so there seems to be more investor buying at a faster pace than the Federal Reserve has been exiting the MBS market.  The end result of all of this buy-sell is lower interest rates, at least temporarily.  Your buyers may be able to catch a lower rate than current rates, but remind them at “rate-chasing” is a gambler’s strategy.  We are happy to consult with your buyers to help them make the best rate decision for them.