Financial Markets- Bonds (Mortgage Rates)

The S&P 500 gained another 300 pts, (nearly 5%) and closed a smidge over 6,700. This has been nice for our 401ks and investment accounts but I sure would like to see some lower mortgage rates even at the expense of a stalled stock market, which is often the case. (Bond markets typically do well when the stock market sells off). We could see a temporary dip in stocks and rally in bonds with a weak jobs report and an extended government shut down. Not that I am rooting for that.

https://www.cnbc.com/quotes/.SPX

The bond market did not fair as well for the month of September. The fed lowered “the rate” on September 17th, and the 10 year US Treasury went from 4.05 to nearly 4.2%...using the formula of adding roughly 2.35% to the 10 year US Treasury and you come up with the average 30 year fixed rate mortgage going from around 6.3% to 6.6%. Below is a vid explaining why this happened.

https://www.youtube.com/shorts/IYSGV2vyb6U

Southern Nevada Real Estate

With August sales in the books 2025 sales pace continues to fall further behind the sales paces of 2023 and 2024. Year to date sales for this year is 23,092 single family residences, condos and town homes. In 2023 at the same time there were a total of 25,554 and same time last year sales totaled 24,454. 2024 had a nice bump in sales at the end of the year when rates dropped briefly to roughly 6.125%. Just goes to show you how activity is heavily reliant on lower interest rates. That said, values are still holding, with median priced homes around $480,000. We are seeing a noticeable dip in the average sales price. If you are a realtor and helping more families this year than the past 2 years, pat yourself on the back!!

August Sales: