Point of Interest
Current mortgage rates in the state of New Mexico are above the national average, but median monthly payments and property tax rates are lower. In addition, the state offers legislative protection against undisclosed property defects.
Are you considering a mortgage in New Mexico or looking to refinance your home for renovations? While mortgage and refinance rates in the state are higher than the national average, residents in New Mexico have property taxes of just 0.67% and homeownership rates are 3.5% higher than the U.S. at large.
This creates a relatively low bar for new homebuyers. While fixed-rate terms mean you will pay more interest than the average homeowner over time, lower overall property costs and tax rates make New Mexico an affordable option for homeownership.
Getting a mortgage in New Mexico
If you’re looking for a mortgage in New Mexico, expect mortgage rates slightly above the national average of 3.510% for a 30-year term. Despite higher interest rates, however, data from the U.S. Census Bureau puts homeownership rates above the nationwide average, while median home prices and monthly mortgage costs are below the U.S. as a whole. The result? While current mortgage rates in New Mexico are outpacing the national average, the housing market remains relatively easy to enter for new homeowners.
- Median home price: $166,800
- Average 30-year fixed rate: 3.84%
- Median monthly mortgage cost: $1,262
- Homeownership rate: 67.6%
New Mexico mortgage rate trends
New Mexico typically follows the national average quite closely — right now, the rate for a 5/1 adjustable-rate ARM in New Mexico is 3.31% on average, while the best national rate is 3.270%. The same holds true historically; according to data from the U.S. Department of Housing and Urban Development, rates in 1995 were more than 4% higher than in 2020, with an average fixed rate of 8.01%. Go back 10 years to 1985 and rates jump to 11.93%, which made homeownership a struggle for many New Mexicans.
New Mexico current mortgage rates
Thankfully, current mortgage rates in New Mexico have been trending downward along with the national average over the past five years. Today, both 30-year refinance and 30-year fixed jumbo rates come in at 3.88%, making this a great time for new homebuyers considering a move to New Mexico — or for current homeowners hoping to refinance their home to pay for renovations or get a lower rate.
Even with great mortgage rates in New Mexico, make sure your potential budget has enough room for monthly payments once you factor in total home price, down payment, loan term and interest rate. Your best bet is to start with an online mortgage calculator to estimate your monthly payment and help narrow your price range.
Most and least expensive places to live in New Mexico
Looking for a place to live in New Mexico? While mortgage rates continue to trend lower year-over-year, what you’ll pay for the house you want varies significantly across the state. In more sought-after counties, for example, even a fixer-upper could cost more than a new home located in a less popular location. As a result, it’s worth knowing where your budget in New Mexico will stretch and where it won’t get you quite as much.
5 most expensive
- Sante Fe County — Considered one of the best places to live in New Mexico, Santa Fe County is also one of the most expensive, with a median home value of $282,600.
- Bernalillo County — Ranked high by residents for great access to restaurants and parks, this county has a median home value of $194,300.
- Catron County — This sought-after county over just over 3,500 people has a median home value of $161,800.
- Sandoval County — Popular with families and young professionals, Sandoval County has a median home value of $191,300.
- Lincoln County — With a strong public school system and population of just under 20,000, this county has a median home value of $206,600.
5 least expensive
- McKinley County — McKinley County is rated well for its outdoor activities and has a median home value of $64,500.
- Luna County — This county of just under 25,000 people scores well for weather and outdoor fitness and has a median home value of $84,500.
- Guadalupe County — The public school system in Guadalupe County is considered above-average, and the median home value is $85,400.
- De Baca County — Earning solid marks for housing options and affordability, De Baca County comes in with a median home value of $95,600.
- Quay County — In Quay County, residents enjoy a strong public school system, easy commute and good weather. The median home value is $72,200.
New Mexico mortgage resources and intricacies
If you’re buying a home in New Mexico, the state offers several resources to help streamline the process and keep your budget on-track, including:
- The New Mexico Mortgage Finance Authority — This quasi-government organization provides assistance for new homebuyers who need help with down payments, closing costs and other mortgage transactions.
- The USDA Rural Development Program — Buyers looking to purchase homes in rural areas of New Mexico can apply with the USDA for direct, single-family home or repair loans.
New Mexico offers additional protection for homeowners with legislation that requires home sellers to disclose “serious material defects” to potential buyers. These defects include broken plumbing systems, leaking roofs or mold inside the home. While a home inspection is always recommended to ensure there are no undetected defects on the property before you make an offer, if sellers have knowledge of these defects but don’t make them known, it’s possible to seek legal remedy.
When you’re budgeting for a home purchase in New Mexico, it’s also worth taking a look at state property taxes. With an effective property tax of 0.67% — which translates to per-capita property taxes of $770.45 — New Mexico has the fourth-lowest tax rate in the country.
The final word
Current mortgage and refinancing rates in New Mexico are higher than the national average but the median home price, monthly mortgage payment and property tax are all below nationwide benchmarks. While the price of homes varies significantly based on the location and surrounding amenities, New Mexico offers a relatively low bar to homeownership with added protections from potential property defects.