LAS VEGAS (KTNV) — A recent decrease in mortgage rates can save buyers hundreds of dollars on their mortgage.
Justine Hill has been looking for a home since 2021, but after mortgage rates spiked, she ended her search. Now, she's getting back in the game.
"Marking that box off that I actually purchased my home seems more obtainable now," she said. "With the current rental market, it is honestly more affordable to pay a mortgage."
Bryan Feldman with Residential Bancorp says the average 30-year fixed mortgage interest rate has dropped below 6% for the first time since September.
"The raising and increasing of rates is coming to an end," Feldman said. "I think we are going to see them trending downward now."
Feldman says, for example, if someone was purchasing a $445,000 home with a FHA loan and 3.5% down payment, back in September, the monthly payment would be about $2,800.
Currently, for the same home, with an interest rate of about 5.25%, the monthly payment would be $2,400, saving about $400.
"If you look at that payment and say this is the same house we looked at in September, let's buy it now," he said. "And you can go and get a car, and you can go and get a car and a house for what would have been your original payment."
Feldman continues saying rates are motivating buyers to make offers.
The latest report from Las Vegas Realtors says there were more than 5,400 homes listed for sale in Southern Nevada without any offers at the end of January. But recently, with this decrease in mortgage rates, realtor Brady McGill says the market is changing.
"I recently hosted an open house of my own, we sold for 20,000 over asking, had 40 showings in the first 3 days," McGill said." And had 10 offers on that home."
For more, see ktnv.com/housing.
