New Mexico Mortgage and Refinance Rates

Current mortgage rates in New Mexico

As of Sunday, December 22, 2024, current mortgage interest rates in New Mexico are 7.00% for a 30-year fixed mortgage and 6.25% for a 15-year fixed mortgage. After a steady upward trend throughout 2022 and 2023, national mortgage rates have trended downward — with some corrections — since the fall of 2023. However, in recent weeks, rates have seen a slight uptick. Rates change every day and can have a significant impact on your monthly payment and how much interest you’ll pay over the loan term.

Refinance rates in New Mexico

While refinance rates are no longer at historic lows, you might be able to do a cash-out refinance to pay for renovations. Use Bankrate’s mortgage refinance calculator to run the numbers.

New Mexico mortgage rate trends

The average rate on a 30-year fixed mortgage in New Mexico declined slightly as of mid-November 2023, but rates overall are still much higher than they have been in recent years. While rates are hard to predict, some now expect them to gradually decline into 2024. While rates are hard to predict, as of its Dec. 2023 meeting, the Federal Reserve forecasted the potential for three rate cuts in 2024. However, at its Jan. 31 meeting, Fed Chair Jerome Powell cautioned that rate cuts may be coming later rather than sooner. These rate cuts are predicated on slowing inflation, which remains to be seen.

National mortgage rates by loan type

Mortgage statistics for New Mexico

New Mexico is known for its varied climates and Southwestern culture. The state’s population growth has stagnated some, according to the New Mexico Legislative Finance Committee. Let’s look at some stats around mortgages and the housing market in “The Land of Enchantment”:

• Median home value (as of Feb. 2024): $290,781 (Zillow)
• Median days to pending (as of Jan. 2024): 25 (Zillow)
• Homes with price drops (as of Jan. 2024): 21% (Redfin)
• Homeownership rate (as of Dec. 2022): 70.9% (Census Bureau)
• Loan funding rate in 2022: 49% (Home Mortgage Disclosure Act)
• Average mortgage loan size in 2022: $275,800 (Home Mortgage Disclosure Act)

Mortgage options in New Mexico

There’s a variety of mortgage options available to homebuyers in New Mexico. Here are some of the most common:

• New Mexico conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• New Mexico FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
• New Mexico VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 3.3 percent.

First-time homebuyer programs in New Mexico

If you’re an eligible first-time homebuyer in New Mexico, these more affordable homebuying loan programs might help:

• FIRSTHome: FIRSTHome is the New Mexico Mortgage Finance Authority’s (MFA) home loan offering for low- to moderate-income first-time homebuyers (defined as a buyer who has not owned a home before or in at least the past three years). 
• FIRSTDown: For borrowers in the FIRSTHome program, the New Mexico MFA also offers FIRSTDown down payment and closing cost assistance up to 4 percent of the home’s sale price. The assistance through FIRSTDown comes in the form of a fixed-rate second mortgage. To be eligible, you must have a FIRSTHome mortgage and be under specific area income limits.
• HomeNow: The HomeNow program offers up to $7,000 in down payment and closing cost assistance for low-income first-time homebuyers. The assistance comes in the form of a second mortgage at zero percent interest, which can be forgiven after 10 years under certain conditions.
• HomeForward: HomeForward is a mortgage and down payment assistance program for both first-time homebuyers and repeat homebuyers with low- to medium-income.

How to find the best mortgage rate in New Mexico for you

• Step 1: Strengthen your credit score - Before you start searching for a lender or applying for a loan, check your credit report for errors and improve your credit score if needed.
• Step 2: Determine your budget - You need to know how much house you can afford before looking for a loan.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation. It’s also a necessary step before putting an offer on a house.

Learn more about how to get a mortgage.

Additional New Mexico mortgage resources

• New Mexico first-time homebuyer resources: Get more help becoming a homeowner.
• New Mexico loan limits by county: Learn the conforming loan limit for your city or town.
• New Mexico mortgage lenders: Compare rates for getting a mortgage in New Mexico.
• Buying a home in New Mexico: Read our guide to learn everything you need to know about buying a home in New Mexico.
• New Mexico’s best homeowners insurance companies: Research the best insurance providers for you to get the right coverage at the right rate.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Laurie Dupnock, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Dupnock