Program Update:
VA construction to permanent financing goes up to $2,000,000 with just 10% down.
Financial Markets- Bonds (Mortgage Rates)
Tariff fears are having its impacts on both the stock market and bond markets, but not quite in the ways analysts expected. The S&P 500 index has dropped nearly 8% since mid February as Tariff threats went into effect. In the simplest explanation, Tariffs for most companies result in increased cost to produce goods and a decrease in profit margins, and stocks are selling off as a result. That isn’t surprising.
However, the bond market, and in particular, mortgage-backed securities, have benefited from the uncertainty that Tariffs have brought to the financial markets. One would think bonds would sell off because of the inflationary fears Tariffs bring, but the uncertainty has driven investors to purchasing bonds while the “tariff storm” passes. US bonds have always been the safe haven for investors to park their money during times of uncertainty.
Also interesting is that the 10 year US Treasury went from around 4.6% to around 4.3% in the past 45 days...a drop of about 30 basis points…but the average 30 year fixed rate mortgage went from roughly 7.1% to 6.65%, a nearly 50 basis point drop. The abnormally wide gap between the 10 year US Treasury and the average 30 year fixed rate mortgage is starting to compress and return to more historic average spreads of 1.5 to 2%.
https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed
Southern Nevada Real Estate
The 2,559 sales in February 2025 was the best February since 2022, albeit not by much. What stands out so far this year compared to the past several years is the percentage of cash deals. 35% of sales were paid with cash in January and over 47% were paid with cash in February! (Sorry lenders).
February Sales:
- Total: 2,559
- Condos: 324
- Townhomes: 320
- Single Family Residences: 1,915
- Inventory increased to 7,812…translating into a 4.07-month supply
- Median-priced home $485,000
- Average priced home $610,986
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