A drop in mortgage rates has sparked a spike in mortgage applications nationwide.
Given rising home values in Las Vegas, sellers can reap rewards in our Market.
“Falling mortgage rates are a great deal for first-time home buyers especially, as it sets them on a positive track for life. Right now, coupled with low interest rates, it is a perfect time to buy”, says Ana Usma with Opendoor.
Opendoor, which is based in San Francisco and has Las Vegas offices, uses technology to radically change the home buying and selling process, including a smartphone app that works like a key to allow you entry into any of their homes in the market.
The Mortgage Bankers of America reported that U.S. mortgage rates fell to the lowest level since September 2017 and mortgage applications rose by 26.8 percent last week. Refinanced loans led the surge, the association said.
The association also said mortgage applications to buy a home rose by 10 percent.
Joel Kan, the association’s associate vice president of economic and industry forecasting, said that because rates have fallen for a few weeks, some previously undecided potential buyers might choose to buy.
“Demand is still relatively strong, but there is likely some restraint from prospective buyers, driven by some economic uncertainty,” Kan told CNBC. “Furthermore, housing supply is still very tight for first-time buyers.”
Examining the Southern Nevada market, the Greater Las Vegas Association of Realtors (GLVAR) reported that in April, the most recent month with available data, local inventory was increasing and average median prices were up from a year earlier.
Citing Multiple Listing Service data, the GLVAR said April’s median price was $300,000, the same as a month earlier and up 3.8 percent from $289,000 a year earlier.
Southern Nevada homes are selling a bit more slowly than a year earlier, the GLVAR said. In April, 74.3 percent of all existing local homes sold within 60 days. A year earlier, 86.5 percent of all existing local homes sold within 60 days.
Opendoor officials can talk about how it expects home prices to moderate in the fall and make it friendlier for people to buy homes in Southern Nevada. They can also discuss the effect of lower mortgage rates and how Las Vegas’ market dynamics might change.