Mortgage rates are expected to drop in 2024.

Since early in 2023, we’ve seen higher interest rates for mortgages, across New Mexico and the United States. Rates reached over 7.50%, a dramatic growth from the 2.50% rate we saw in 2020.

Now as we approach the summer of 2024, in the short term, high interest rates are persisting but most experts believe that rates will break loose and drop before the end of the year.

All those borrowers who have mortgages higher than 6% will want to be ready to refinance into the lower rates when they get here. But if you have one of those mortgages over 6% interest, we urge you to be very careful– borrowers will be bombarded from many different lenders via phone calls, emails, texts, and direct mailers. We believe that most of these companies do not have the best interest of the borrower in mind and that many of them will offer mortgage rates that are good for the company but not the borrower.

For example, if the lender can get the borrower to refinance a higher rate than they could really get, the company makes more money for that higher rate. So they will pressure the borrower to refinance quickly.

Some lenders will offer a very low rate BUT they will do so by charging many thousands in buy-down fees and not disclose that upfront to the borrower. If the borrowers don’t shop their mortgage to get offers from several vendors, they might be doing themselves a huge disservice. We encourage borrowers to get ready for the onslaught of offers but don’t pull the trigger until you have shopped with your trusted local mortgage company, Indigo Mortgage. We’ve served New Mexico homebuyers with the right mortgage for their financial situation since 2003.

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