Albuquerque Real Estate Market
Albuquerque Real Estate Market Update:
The financial markets are focused on the government shutdown and the impending debt ceiling deadline of October 17th. The financial markets do not like uncertainty or bad economic or political news. As a result, a flight to quality occurs with money flowing out of stocks and into the bond markets. This is good news for mortgage rates. Mortgage rates typically decline during bad economic times or uncertain political times. Therefore, home buyers may benefit from the lower rates until a formal agreement is announced. When an agreement is announced we will probably see the stock market rally and mortgage rates increase.
There is another significant issue that has impacted the real estate and mortgage markets and that is Quantitative Easing. Mortgage rates have increased significantly during 2013 due to comments by the Federal Reserve that they begin curtailing their Quantitative Easing over the coming months. Their comments have substantially increased the cost of homeownership for consumers due to higher mortgage rates. Therefore, it is important to see how the Federal Reserve policy on Quantitative Easing will be impacted by the agreement to resolve the debt ceiling and government shutdown crisis.
Consumer confidence is another issue that will be impacted by all of the uncertainty surrounding the government shutdown and the debt ceiling crisis. We have seen the impact of lower consumer confidence on the housing and real estate markets over the last few years. Lower consumer confidence will lead to lower home sales.
Lets all hope that this issue is resolved in a timely manner before we lose more jobs in Albuquerque and loose the gains we have experienced in the Albuquerque Real Estate Market.