Las Vegas and Reno, Nevada Mortgage rates are down. They just hit their lowest rates in months. Despite inflation still being at 3.4% the housing market has not slowed. The Federal Reserve had anticipated a slowdown but that is not happening. Why?
You see the big housing crash of 2008-2009 was not caused by high interest rates or high inflation. Rather it was caused by bad business practices such as:
- Predatory lending where loans targeted low-income buyers
- Relaxed lending standards
- Mortgage fraud
- Poor regulation
- Excessive risk-taking
All those issues were solved 15 years ago. Today, the market is controlled by supply and demand, and Las Vegas is doing great.
According to Realtor.com, approximately 30% of metro areas experienced double-digit price growth from the fourth quarter of 2023, particularly evident in the persistent rise in rents, with prices soaring by as much as 15%.
This trend persists despite some of the highest mortgage rates in decades. As reported by Mortgage News Daily, national average rates have recently decreased, although local rates may be even lower. Here are the current rates:
| Current Rates | |
| Prime Rate (1) | 8.50% |
| Jumbo 30-year | 7.39% |
| Conventional 7/6 ARM | 7.34% |
| Conventional 30-year | 7.15% |
| Conventional 15-year | 6.63% |
| VA 30-year | 6.62% |
| FHA 30-year | 6.61% |
(1) Base rate for home equity lines and loans
It’s also worth noting that non-QM rates, such as bank statement loans and no-doc investor loans, tend to be approximately 1-2% higher.
While concerns about a housing crash persist, it’s essential to consider the broader economic context and the differences between the current market conditions and those that precipitated previous crises. Understanding these nuances is crucial for accurately assessing the state of the housing market and its potential trajectory.