Interest rates love em or hate em?

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Will Interest Rates Go Down Soon? What Albuquerque Buyers & Sellers Need to Know

If you're keeping an eye on the housing market in Albuquerque, there's a good chance you're also watching interest rates—and wondering if relief is on the horizon.

So, will interest rates go down soon? The short answer: maybe—but not dramatically, and not overnight.

What's Going On with Interest Rates?

After hitting record lows in 2020 and 2021, interest rates rose sharply throughout 2023 and 2024 as the Federal Reserve fought to bring inflation under control. In 2025, we've seen the Fed hit pause on further hikes—and in recent months, there’s been growing speculation about possible rate cuts heading into late 2025 or early 2026.

Economists are divided. Some believe that if inflation continues to cool, the Fed could begin easing rates modestly. But any reductions are expected to be gradual, not the dramatic drops some buyers might be hoping for.

 What Does This Mean for Albuquerque’s Market?

Here in Albuquerque, the real estate market is still relatively active despite higher borrowing costs. Home prices have remained fairly stable, and the area continues to attract interest from buyers leaving more expensive cities like Los Angeles and Seattle.

If rates do drop—even slightly—we could see:

  • More buyers re-entering the market

  • Increased competition for homes

  • A possible boost in home values if demand picks up

For sellers, that could be a welcome shift. For buyers, it means acting sooner—before rates fall and competition rises—might actually be the smarter move.

 Should You Wait?

It’s tempting to hold out for lower interest rates, but timing the market perfectly is tough. Even a small drop in rates can be wiped out by rising home prices or added competition. If you find a home that fits your needs and budget now, it may still be worth moving forward—especially if you can refinance later when rates dip.

Bottom Line

Interest rates might come down, but don’t bank on a big drop anytime soon. Whether you're buying or selling in Albuquerque, it’s best to make a plan based on your current goals, not just the headlines.

If you're unsure what move makes sense in this market, reach out—I'd be happy to help you weigh your options.