Why NH Mortgage Rates Are Among the Cheapest in the Country Roger Odoardi NH Mortgage Rates Earn Top Ten Nod. A recent study of mortgage rates across the country shows that NH mortgage rates are easily among the most affordable. The study, conducted in partnership by GoBankingRates and RateWatch, used a weighted average of each state’s rates for five-year adjustable-rate mortgages (ARMs), 15-year fixed-rate mortgages (FRMs) and 30-year FRMs. In the end, with an average mortgage rate of 3.65%, the Granite State came in as being the 10th cheapest state in the US. The study also named NH mortgage rates as being the third cheapest for five-year adjustable-rate mortgages. But what is it that makes NH mortgage rates so cheap—and therefore more appealing to first time homebuyers and veteran homebuyers alike? In order to understand what makes NH mortgage rates so cheap, you first must understand what factors go into determining these rates in the first place. Home loan rates are set and affected by a variety of factors, the most important of which involves the link between market demand and the general condition of the local, regional and national economy. So in order to understand NH mortgage rates, we must look at each of these factors individually. Market Demand The supply and demand of the housing market can directly influence mortgage rates. Any major shifts, unexpected or expected, in that supply or demand can affect mortgage rates. For instance, if housing demand in a certain area is high thanks to things like job growth potential and the health of the overall economy, buyer demand will increase and rates will do the same. By most accounts, the NH housing market is strong. Or, as realtor Ann Cummings of RE/MAX By The Bay in Portsmouth describes in the 2014 Housing Forecast, “New Hampshire’s housing market is on solid ground.” According to the Northern New England Real Estate Network (NNEREN), the number of single-family, condominium and multifamily transactions rose across the board in 2013. According to NNEREN data, in 2013, single-family home sales jumped 10.9% compared to 2012, and condo sales increased 17.8% year-over-year—both representing the second highest jump in New England. Economic Indicators Mortgage rates can also bear the brunt of a struggling economy or high unemployment rates. If a region’s economy is in rough shape and the unemployment rate is high, people are less likely to be buying houses, forcing rates to fall to entice borrowers. The reason NH mortgage rates are so low has much to do with its steady economy, not to mention the fact that the state’s unemployment rate of 4.4% is among the best in the country and is well below the national average of 6.6%. Truly understanding why NH mortgage rates are so favorable is much more complicated than just looking at market demands, and other economic indicators. But one thing’s for certain, now may be the best time for homebuyers to capitalize on the low interest rates and the state’s improving housing market. At Blue Water Mortgage, we can help you capitalize on today’s current interest rates and get you in a new home in no time. Our products and programs are designed to get you the lowest mortgage rate possible, no matter your financial situation. Contact us today! Roger Odoardi Roger is an owner and licensed Loan Officer at Blue Water Mortgage. He graduated from the University of New Hampshire’s Whittemore School of Business and has been a leader in the mortgage industry for over 20 years. Roger has personally originated over 2500 residential loans and is considered to be in the top 1% of NH Loan Officers by leading national lender United Wholesale Mortgage.