I wrote the text version of this article a couple of weeks ago, and recorded this video on Sunday, October 15. Since then, the case I make in this piece is even more true, with the 10-year U.S. Treasury (off of which fixed-rate mortgages are priced) now at an intra-day level of 4.99%, which is a huge move from last week’s close around 4.63%.
Ironically, this holds some good news for homebuyers. While mortgage loans are more expensive, the high rates we see now are limiting supply and driving price increases even in the face of declining demand. As long as high treasury yields are in place, we might expect stable and increasing prices in most segments of the real estate market in Santa Fe. And we could be in for an extended period of high rates. Again, this may seem like bad news — but its effect on prices is a BIG positive for homeowners and homebuyers.
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