Las Vegas Real Estate Blog
The Reason Mortgage Rates Are Projected to Increase and What It Means for You
We’re currently experiencing historically low mortgage rates. Over the last fifty years, the average on a Freddie Mac 30-year fixed-rate mortgage has been 7.76%. Today, that rate is 2.81%. Flocks of homebuyers have been taking advantage of these remarkably low rates over the last twelve months. However, there’s no guarantee rates will remain this low much longer.
Whenever we try to forecast mortgage rates, we should consider the advice of Mark Fleming, Chief Economist at First American:
“You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and/or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”
Many things impact mortgage rates. The economy, inflation, and Fed policy, just to name a few. That makes forecasting rates difficult. However, there’s one metric that has held up over the last fifty years – the relationship between mortgage rates and the 10-year treasury rate. Here’s a graph detailing this relationship since Freddie Mac started keeping mortgage rate records in 1972:
Where Have All the Houses Gone?
In today’s housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale in Las Vegas. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market while buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.com, explains:
“With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.”
Every month, realtor.com releases new data showing the year-over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:
Does this mean houses aren’t being put on the market for sale?
Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they’re being counted as current inventory. The market is that...
Millennials Buying in 2021
In today’s housing market, all eyes are on millennials. Not only are millennials the largest generation, but they’re also currently between 25 and 40 years old, which is often considered the prime homebuying years when many people begin to form their own households and invest in real estate.
If you’re a millennial thinking about moving this year, message us to learn more about the opportunities in our area....
Home Mortgage Rates by Decade [INFOGRAPHIC]
- Mortgage interest rates have dropped considerably over the past year, and compared to what we’ve seen in recent decades, it’s a great time to buy a home.
- Locking in a low rate today could save you thousands of dollars over the lifetime of your home loan, but these low rates may not last forever.
- If you’re in a position to buy a home, let’s connect to determine your best move in today’s housing market while interest rates are still in your favor.
Things to Avoid after Applying for a Mortgage
- There are a few key things to make sure you avoid after applying for a mortgage to help make sure you still qualify for your loan at the closing table.
- Along the way, be sure to discuss any changes in income, assets, or credit with your lender, so you don’t unintentionally jeopardize your application.
- The best plan is to fully disclose your intentions with your lender before you do anything financial in nature.
Why It’s Easy to Fall in Love with Homeownership
Time to Sell Your 2nd Home?
High buyer demand is heating up today’s housing market. If you have a vacation home in Las Vegas that just doesn’t fit your needs anymore, this spring is a perfect time to sell while buyers have destination fever. Home prices have increased by 10.2% since Janary 2020! Message us to get started on the selling process!...
Should I Wait for Lower Mortgage Interest Rates?
Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you’re ready to buy a home.
According to Greg McBride, Chief Financial Analyst for Bankrate:
“As vaccines become more widely available and a return to normal starts to come into view, we’ll see mortgage rates bounce off the record lows.”
While only a slight increase in mortgage rates is projected for 2021, some experts believe they will start to rise. Over the past week, for example, the average mortgage rate ticked up slightly, reaching 2.79%. This is still incredibly low compared to the trends we’ve seen over time. According to Freddie Mac:
“Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”
Thinking about Building a New Home in Las Vegas? Your Agent Is Critical.
- A real estate professional is an expert who can advocate on your behalf throughout the process when building a home.
- Agents help you understand key steps, like choosing upgrades and managing negotiations, while staying within your budget from start to finish.
- If building is the right option for you, let’s connect so you have a trusted real estate professional who can help you successfully navigate the path to your dream home.
What Record-Low Housing Inventory in Las Vegas Means for You
The Las Vegas real estate market is expected to do very well in 2021, with mortgage rates that are hovering at historic lows and forecasted by experts to remain favorable throughout the year. One challenge to the housing industry, however, is the lack of homes available for sale today. This week, our local stats for Las Vegas shows that the inventory of homes for sale is currently at an all-time low. The report explains:
“Total housing inventory this week totals just 2,710 units, down from just a week ago (2,923 units).”
(See graph below):
What Does This Mean for You?
If You’re a Buyer:
Do I Really Need a 20% Down Payment to Buy a Home?
Is the idea of saving for a down payment holding you back from buying a home right now? You may be eager to take advantage of today’s low mortgage rates, but the thought of needing a large down payment might make you want to pump the brakes. Today, there’s still a common myth that you have to come up with 20% of the total sale price for your down payment. This means people who could buy a home may be putting their plans on hold because they don’t have that much saved yet. The reality is, whether you’re looking for your first home or you’ve purchased one before, you most likely don’t need to put 20% down. Here’s why.
According to Freddie Mac:
“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”
If saving that much money sounds daunting, potential homebuyers might give up on the dream of homeownership before they even begin – but they don’t have to.
Data in the 2020 Profile of Home Buyers and Sellers from...
Winter 2021 - Is Right Now the Right Time to Sell in Las Vegas?
- If you’re on the fence about selling your house in Las Vegas, now is a great time to take advantage of sky-high demand, low supply, and fierce buyer competition.
- With buyer demand rising and historically low inventory for sale, if you’re in a position to move, your house may really stand out from the crowd.
- Let’s connect today to get your listing process underway!