2023 is around the corner, which means the housing market is bound to change. Indigo Mortgage New Mexico has a few market updates for the new year.
Fannie Mae and Freddie Mac recently announced that the max mortgage loan limit is increasing in 2023. The max mortgage loan limit is going from $647,200 to $715,000. This means borrowers can now benefit from the conventional pricing versus the jumbo pricing on loans up to $715,000. Mortgage rates have also come from their recent highs, which were in the seven percent range, and are now down into the low sixes and high fives. If you are in the market for a new home and are sitting at a seven percent interest rate, it may behoove you to shop around.
Another option to mention is a temporary rate buydown. Buydowns are becoming increasingly popular as interest rates are higher than normal. These temporary buydowns are a great way to offset inflation and take advantage of payment relief in the first 1 to 3 years.
The Fed has also raised the funds rate by half a percent recently. This has had a minimal influence on mortgage rates and has more of an effect on HELOCs, credit cards, and auto loans. The mortgage rates went down slightly as inflation calmed down, affecting the home mortgage market.
Whether you are looking to refinance or purchase a new home, it’s always a great idea to shop around and work with a local lender when possible. Don’t take a higher rate than you have to. Reach out to the team at Indigo Mortgage. We are here to help!