New Mexico Mortgage Rates for June 2020

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This week in New Mexico, the average rate on a 30-year mortgage is 3.79%. The average 15-year fixed mortgage rate is currently 3.44%, and the average initial rate for a 5/1 adjustable rate mortgage (ARM) is 3.85%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.79%–0.26%–0.28%
15-year fixed3.44%–0.25%–0.15%
5/1 ARM3.85%–0.15%+0.20%
Rates for a $200,000 loan with 20% down payment

Most borrowers know that the cost of a mortgage is best understood in terms of its interest rate, which determines your monthly payments. However, the fact that rates are frequently changing make it a challenge to know when you should lock in a rate for good. To help you navigate the mortgage shopping experience in New Mexico, we report on the latest information about average mortgage estimates on the most popular loan types in the market.

Best Mortgage Rates in New Mexico

The lowest rate estimated for a 30-year mortgage in New Mexico is 3.25%. The best 15-year fixed-rate mortgage estimate is 2.75%. Lastly, the lowest annual rate offered on the first five years of a 5/1 ARM is 3.38%. The estimates apply to a hypothetical purchase of $200,000 with a 20% down payment in New Mexico.

It's common for homebuyers to be surprised by the high rates they're quoted in comparison to the numbers advertised upfront by banks and other mortgage lenders. This usually happens because every quote is tailored to the applicant's personal credit history and financial profile, which leads to higher rates for those considered to be riskier borrowers. However, larger market forces also shape rate estimates in a way that's often harder to understand.

These multiple influences make it unrealistic for typical borrowers to know what a fair rate will look like from the very start of their shopping experience. To deal with this, borrowers can study how interest rates have behaved in the recent past and take a broad sample of quotes from multiple mortgage lenders. Combining these tactics should allow you to gauge the right time and place to lock in your mortgage rate.

Current Mortgage Rate Forecast for New Mexico

So far this year, mortgage rates have undergone a slight decrease. The Federal Open Market Committee (FOMC) originally planned on instituting several rate hikes in 2019, but has since changed its position in response to new economic data. The FOMC's current policy of patient observation means that interest rates on mortgages and other types of credit are unlikely to increase for the time being.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

The rate changes made by the FOMC affect something called the effective federal funds rate, which determines the cost of borrowing for banks. These banks in turn adjust the rates they offer to consumers on products like mortgages. As the chart above shows, the relationship between mortgage rates and the federal funds rate isn't perfect. However, the two do show some correlation in the long run.

For homebuyers in New Mexico, the current trend offers an opportunity to lock in somewhat lower mortgage rates than the end of last year. But historically speaking, mortgage rates have been relatively low for several years. It's probably more important to consider changes in real estate values for the neighborhoods you're considering. The amount you pay from month to month is determined by your home loan balance as well as the rate.

Rates at New Mexico's Most Popular Mortgage Lenders

While consumer banks now play a smaller role in mortgage lending than online companies like Quicken, they still offer a good barometer of market rates in most states. We gathered a number of loan estimates from New Mexico's largest banks to see how they varied in terms of rate.

Column graph comparing 30-year mortgage rates at major New Mexico banks

At the time we gathered these estimates, mortgage rates among New Mexico's leading banks showed some amount of variation. While mortgage lending is a nationwide market in which most lenders offer similar rates, it's still possible to find small differences that can result in a lower monthly payment. This is why it makes sense to request more than one quote when you're shopping for a loan.

Comparing Home Loan Rates by City

While it's a well-known fact that location has a major influence on the price of property, mortgage rates aren't nearly as dependent on your location. To highlight how this works in New Mexico, we looked at both the average 30-year mortgage rate and the median value of owner-occupied homes in each major city.

AreaAverage mortgage rateMedian home value
Albuquerque4.59%$203,051
Las Cruces4.58%$153,139
Santa Fe4.63%$310,263
Farmington4.57%$161,039
Average rate is for a 30-year mortgage with a 20% down payment.

We found that while the median value of a home in New Mexico can double depending on where you're looking, the average mortgage rate remains stable throughout the state. While the numbers above only apply to 30-year fixed-rate loans, the similarities in rate will probably apply to any other mortgage type. Interest rates do vary drastically between a 30-year loan and a 15-year loan, but not for two 15-year loans in different cities.

Given that mortgage rates are mostly the same wherever you look, it's unrealistic to expect that a local lender will give you a discounted mortgage rate. However, it may be possible that a local lender will be able to offer more relevant and personalized customer service than a massive national operation. Given the complexity of the mortgage process, you may find that extra quality worth the tradeoff of a slightly higher rate.

Evaluating Your Mortgage Options: An Example in Myrtle Beach

Other than shopping lenders and improving their financial profile, one major way for borrowers to lower their mortgage rates is to choose a loan type other than the standard 30-year mortgage. Both 15-year fixed rate mortgages and adjustable-rate mortgages (ARMs) are popular alternatives. We can see how this works through the example of a home purchase in Albuquerque.

Let's say you're buying a home that's about $200,000 in Albuquerque, close to the city's median value. If you bring a 20% down payment, a 30-year loan at the current average rate will lead to monthly principal and interest charges of $745. Over thirty years of payments, that totals $108,064 in interest costs. If you're a younger homeowner, the lower initial rate of an ARM can help you reduce this cost in the early part of the term.

This is because ARMs offer a lower fixed rate for the first few years of the loan, after which the rate becomes variable. While your long-run costs can balloon if the variable rate goes too high, families who plan on moving in just a few years can avoid the variable rate entirely. In New Mexico, the initial 5/1 ARM rate averages 3.85%. For the first five years, this comes out to monthly principal and interest of $751.

Buyers who plan on achieving full equity might want the 15-year mortgage instead. By squeezing the repayment schedule into half the time, you would pay more money per month but far less in lifetime interest. Applied to our scenario, a 15-year mortgage at today's typical rates would cost you at least $1,140 per month but just $45,039 in interest by the end of the loan.

This week in New Mexico, the average rate on a 30-year mortgage is 3.79%. The average 15-year fixed mortgage rate is currently 3.44%, and the average initial rate for a 5/1 adjustable rate mortgage (ARM) is 3.85%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.79%–0.26%–0.28%
15-year fixed3.44%–0.25%–0.15%
5/1 ARM3.85%–0.15%+0.20%
Rates for a $200,000 loan with 20% down payment

Most borrowers know that the cost of a mortgage is best understood in terms of its interest rate, which determines your monthly payments. However, the fact that rates are frequently changing make it a challenge to know when you should lock in a rate for good. To help you navigate the mortgage shopping experience in New Mexico, we report on the latest information about average mortgage estimates on the most popular loan types in the market.

The lowest rate estimated for a 30-year mortgage in New Mexico is 3.25%. The best 15-year fixed-rate mortgage estimate is 2.75%. Lastly, the lowest annual rate offered on the first five years of a 5/1 ARM is 3.38%. The estimates apply to a hypothetical purchase of $200,000 with a 20% down payment in New Mexico.

It's common for homebuyers to be surprised by the high rates they're quoted in comparison to the numbers advertised upfront by banks and other mortgage lenders. This usually happens because every quote is tailored to the applicant's personal credit history and financial profile, which leads to higher rates for those considered to be riskier borrowers. However, larger market forces also shape rate estimates in a way that's often harder to understand.

These multiple influences make it unrealistic for typical borrowers to know what a fair rate will look like from the very start of their shopping experience. To deal with this, borrowers can study how interest rates have behaved in the recent past and take a broad sample of quotes from multiple mortgage lenders. Combining these tactics should allow you to gauge the right time and place to lock in your mortgage rate.

So far this year, mortgage rates have undergone a slight decrease. The Federal Open Market Committee (FOMC) originally planned on instituting several rate hikes in 2019, but has since changed its position in response to new economic data. The FOMC's current policy of patient observation means that interest rates on mortgages and other types of credit are unlikely to increase for the time being.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

The rate changes made by the FOMC affect something called the effective federal funds rate, which determines the cost of borrowing for banks. These banks in turn adjust the rates they offer to consumers on products like mortgages. As the chart above shows, the relationship between mortgage rates and the federal funds rate isn't perfect. However, the two do show some correlation in the long run.

For homebuyers in New Mexico, the current trend offers an opportunity to lock in somewhat lower mortgage rates than the end of last year. But historically speaking, mortgage rates have been relatively low for several years. It's probably more important to consider changes in real estate values for the neighborhoods you're considering. The amount you pay from month to month is determined by your home loan balance as well as the rate.

While consumer banks now play a smaller role in mortgage lending than online companies like Quicken, they still offer a good barometer of market rates in most states. We gathered a number of loan estimates from New Mexico's largest banks to see how they varied in terms of rate.

Column graph comparing 30-year mortgage rates at major New Mexico banks

At the time we gathered these estimates, mortgage rates among New Mexico's leading banks showed some amount of variation. While mortgage lending is a nationwide market in which most lenders offer similar rates, it's still possible to find small differences that can result in a lower monthly payment. This is why it makes sense to request more than one quote when you're shopping for a loan.

While it's a well-known fact that location has a major influence on the price of property, mortgage rates aren't nearly as dependent on your location. To highlight how this works in New Mexico, we looked at both the average 30-year mortgage rate and the median value of owner-occupied homes in each major city.

AreaAverage mortgage rateMedian home value
Albuquerque4.59%$203,051
Las Cruces4.58%$153,139
Santa Fe4.63%$310,263
Farmington4.57%$161,039
Average rate is for a 30-year mortgage with a 20% down payment.

We found that while the median value of a home in New Mexico can double depending on where you're looking, the average mortgage rate remains stable throughout the state. While the numbers above only apply to 30-year fixed-rate loans, the similarities in rate will probably apply to any other mortgage type. Interest rates do vary drastically between a 30-year loan and a 15-year loan, but not for two 15-year loans in different cities.

Given that mortgage rates are mostly the same wherever you look, it's unrealistic to expect that a local lender will give you a discounted mortgage rate. However, it may be possible that a local lender will be able to offer more relevant and personalized customer service than a massive national operation. Given the complexity of the mortgage process, you may find that extra quality worth the tradeoff of a slightly higher rate.

Chris Moon

Chris is a Product Manager for ValuePenguin with years of experience in addressing critical questions about mortgages and homeowners insurance. He spends his time evaluating insurance providers and policy features to understand where consumers might find the most cost-effective coverage. Chris has contributed insights to the New York Times and many other publications.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply